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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? Explain. 4 $. Analyze the following transactions and fill up the given matrix. The answer to the first transaction is given as an example: Income Statement of Financial Position Statement Business Transaction + Revenues Total Owner's Total Assets - Expenses Liabilities Equity 1 Owner invested P100000 +100,000 +100,000 cash in business 2 Incurred legal expenses and paid P10,000 3 Paid cash for employee wages, P15,000 4 Issued note for cash borrowed, P300,000 5 Received P50,000 cash for service provided 6 Bought car P500,000. 50% down, note for 50% 7 Bought office equipment on credit, P180,000 8 Provided services to clients on credit, P75,000 9 Collected 50% on client accounts 10 Owner withdrew cash, P5,000 11 Net Income Net loss to Owner's Equity 8 a. Get the totals and prove the accounting equation 6. Out of the total assets, how much is cashStep by Step Solution
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