How much should be the capital balance of Mr. Wa Is on December 31, 2020, under the cash basis of accounting?
How much should be the capital balance of Mr. Wa Is on December 31, 2020, under the cash basis of accounting?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Mr. Wa started a service business on October 1, 2020, with an initial investment of P400,000. During 2020, he provided P800,000 worth of services to customers, of which P200,000 were collected during January 2021. Expenses incurred amounted to P400,000, including P100,000, which were paid during January 2021. Mr. Wa Is withdrew P60,000 during 2020. How much should be the capital balance of Mr. Wa Is on December 31, 2020, under the cash basis of accounting?
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