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1. How much is the total expense? 2. How much is the net income? 3. What is the balance of the ending capital?

1. How much is the total expense? 2. How much is the net income? 3. What is the balance of the ending capital?

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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1. How much is the total expense? 2. How much is the net income? 3. What is the balance of the ending capital? 4. How much is the increase in the capital of Choy after taking into account all transaction?
Choy, after recelving her degree in Hotel and Restaurant Management began her own business called Choy Cakes and Patries. She completed the following transactions soon after the start of the business. Choy began her business with a P150,000 cash investment, which she deposited in the bank and alaptop and printer worth P35,000. Paid one month's rent on a sales outlet space for her business. Rent is P10,000 per month. Choy does her baking at their home and she only needed a display and sales outlet for her products. Purchased an oven worth P70,000 in cash. Purchased baking supplies on account worth P50,000. Purchased baking paraphernalia like pans, etc.worth P20,000, in cash. Received cash for cakes and pastries sold, P40,000 for the month. Billed a customer for the cakes and pastries ordered for a birthday party, P15,000. Paid utilities for the month worth P5000. b. C. d. e. f. h. 7. Paid her parents for the space being used as baking area at their home, P5000. Determined that baking supplies is now worth P30,000 for the month. From letter D transaction, Choy paid P20,000. Customer from letter G paid his order in full Choy withdrew P10,000 cash from the business for personal use. k. m. Required: Analyze the transactions as to their effect on the accounting equation. Show new balances after each transaction. Identify each owner's equity account type. Please use the following acount names/account titles for uniformity: Assets: Cash Accounts receivable Baking supplies Baking tools Oven Office equipment Labity Accounts payable Capital: Choy, capital Choy, Withdrawals Sales revenue Rent expense Utilities expense Esuadxa sagddns Bupreg
Transcribed Image Text:Choy, after recelving her degree in Hotel and Restaurant Management began her own business called Choy Cakes and Patries. She completed the following transactions soon after the start of the business. Choy began her business with a P150,000 cash investment, which she deposited in the bank and alaptop and printer worth P35,000. Paid one month's rent on a sales outlet space for her business. Rent is P10,000 per month. Choy does her baking at their home and she only needed a display and sales outlet for her products. Purchased an oven worth P70,000 in cash. Purchased baking supplies on account worth P50,000. Purchased baking paraphernalia like pans, etc.worth P20,000, in cash. Received cash for cakes and pastries sold, P40,000 for the month. Billed a customer for the cakes and pastries ordered for a birthday party, P15,000. Paid utilities for the month worth P5000. b. C. d. e. f. h. 7. Paid her parents for the space being used as baking area at their home, P5000. Determined that baking supplies is now worth P30,000 for the month. From letter D transaction, Choy paid P20,000. Customer from letter G paid his order in full Choy withdrew P10,000 cash from the business for personal use. k. m. Required: Analyze the transactions as to their effect on the accounting equation. Show new balances after each transaction. Identify each owner's equity account type. Please use the following acount names/account titles for uniformity: Assets: Cash Accounts receivable Baking supplies Baking tools Oven Office equipment Labity Accounts payable Capital: Choy, capital Choy, Withdrawals Sales revenue Rent expense Utilities expense Esuadxa sagddns Bupreg
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