Answered step by step
Verified Expert Solution
Question
1 Approved Answer
please answer all the questions thankyou 4. During the month of October, High Performance Company has the following transactions: a Revenues of P100,000 were earned
please answer all the questions thankyou
4. During the month of October, High Performance Company has the following transactions: a Revenues of P100,000 were earned of which 80% was received in cash b. Bank loans P25,000 were paid off c. Equipment of P50,000 was purchased and paid in cash d. Expenses of P75.000 were incurred but P25,000 was not paid in cash e. Additional P60.000 cash contribution was made by the owner f. Owner's personal expenses paid using cash of the business, P10,000 Using the matrix, determine profit, cash. liabilities and equity balances as at October 31 Transaction Revenues (Expenses) Asset other than cash Cash Received or (Paid) P75.000 Liabilities Incurred (Paid) P80.000 Owner's Capital 150,000 ? Balances a) g. Transfer the net profit to the capital account. Required: a) Compare profit and cash. Comment on why the balances are not the same. b) Prove the accounting equation. Is owner better off at the end of the month? ExplainStep by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started