How much should be the capital balance of Mr. Wa Is on December 31,2020 under the cash basis of accounting?

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Mr. Wa Is 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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