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ABC Company started its business operations on November 2, 2021. The following were the transactions during the month: The owner made a cash investment to the business amounting to P2,000,000. Nov. 2, 2021 Obtained a P500,000 loan and issues a promissory note to Nov. 5, 2021 Citibank. Nov. 8, 2021 Acquired land costing P1,000,000 on cash basis. Nov.16, 2021 Rendered services worth P1,200,000 on account, Nov.30, 2021 Paid salaries of the workers amounting to P280,000. How much is the owner's capital balance at the end of its first month of operation?

ABC Company started its business operations on November 2, 2021. The following were the transactions during the month: The owner made a cash investment to the business amounting to P2,000,000. Nov. 2, 2021 Obtained a P500,000 loan and issues a promissory note to Nov. 5, 2021 Citibank. Nov. 8, 2021 Acquired land costing P1,000,000 on cash basis. Nov.16, 2021 Rendered services worth P1,200,000 on account, Nov.30, 2021 Paid salaries of the workers amounting to P280,000. How much is the owner's capital balance at the end of its first month of operation?

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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ABC Company started its business operations on November 2, 2021. The following were the transactions during the month: The owner made a cash investment to the business amounting to Nov. 2, 2021 P2,000,000. Obtained a P500,000 loan and issues a promissory note to Nov. 5, 2021 Citibank. Nov. 8, 2021 Acquired land costing P1,000,000 on cash basis. Nov.16, 2021 Rendered services worth P1,200,000 on account. Nov.30, 2021 Paid salaries of the workers amounting to P280,000. How much is the owner's capital balance at the end of its first month of operation?
Transcribed Image Text:ABC Company started its business operations on November 2, 2021. The following were the transactions during the month: The owner made a cash investment to the business amounting to Nov. 2, 2021 P2,000,000. Obtained a P500,000 loan and issues a promissory note to Nov. 5, 2021 Citibank. Nov. 8, 2021 Acquired land costing P1,000,000 on cash basis. Nov.16, 2021 Rendered services worth P1,200,000 on account. Nov.30, 2021 Paid salaries of the workers amounting to P280,000. How much is the owner's capital balance at the end of its first month of operation?
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