Cesar Vasquez, a businessman, has the following personal properties: Cash, P100,000 Land, P200,000; building, P11,500,000 and car P500,000. He invested his cash and car in an eatery The other assets of the eatery were purchased and paid for using the investet cash: furniture and fixtures, P30,000; equipment, P60,000 and supplies, P5,000. Question: What accounting principle did you apply in recording the assets of the business Required: List down the assets of the eatery. Refer to the first number, but assume that Mr. Vasquez invested the car and only one hal! of his personal cash in the business. Question: How much should he borrow to be able to buy the other assets and still have PI0,000 cash to be used as working fund?
Cesar Vasquez, a businessman, has the following personal properties: Cash, P100,000 Land, P200,000; building, P11,500,000 and car P500,000. He invested his cash and car in an eatery The other assets of the eatery were purchased and paid for using the investet cash: furniture and fixtures, P30,000; equipment, P60,000 and supplies, P5,000. Question: What accounting principle did you apply in recording the assets of the business Required: List down the assets of the eatery. Refer to the first number, but assume that Mr. Vasquez invested the car and only one hal! of his personal cash in the business. Question: How much should he borrow to be able to buy the other assets and still have PI0,000 cash to be used as working fund?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Please answer the last two questions.(working fund and statement of Financial Position)
Don't answer the principle and list of assets. Thanks tutor.
Transcribed Image Text:Cesar Vasquez, a businessman, has the following personal properties: Cash, P100,000
Land, P200,000; building, P11,500,000 and car P500,000. He invested his cash and car i
an eatery The other assets of the eatery were purchased and paid for using the investet
cash: furniture and fixtures, P30,000; equipment, P60,000 and supplies, P5,000.
Question: What accounting principle did you apply in recording the assets of the business?
Required: List down the assets of the eatery.
Refer to the first number, but assume that Mr. Vasquez invested the car and only one halt
of his personal cash in the business.
Question: How much should he borrow to be able to buy the other assets and still have
P10,000 cash to be used as working fund?
Required: Prepare a statement of financial position for the business.
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