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On January 1, Entity A invested cash of P 50,000. On January 5, the business performed services amounting to P 40,000, 40% of which is on a cash basis. On January 10, the entity collected half of its receivables. During the month, the entity incurred P 40,000 expenses, P 18,000 of which have been paid. An equipment was also bought on account for P 10,000. A withdrawal of P 5,000 was also made. Compute the cash balance as of January 31.

On January 1, Entity A invested cash of P 50,000. On January 5, the business performed services amounting to P 40,000, 40% of which is on a cash basis. On January 10, the entity collected half of its receivables. During the month, the entity incurred P 40,000 expenses, P 18,000 of which have been paid. An equipment was also bought on account for P 10,000. A withdrawal of P 5,000 was also made. Compute the cash balance as of January 31.

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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On January 1, Entity A invested cash of P 50,000. On January 5, the business performed services amounting to P 40,000, 40% of which is on a cash basis. On January 10, the entity collected half of its receivables. During the month, the entity incurred P 40,000 expenses, P 18,000 of which have been paid. An equipment was also bought on account for P 10,000. A withdrawal of P 5,000 was also made. Compute the cash balance as of January 31.
Transcribed Image Text:On January 1, Entity A invested cash of P 50,000. On January 5, the business performed services amounting to P 40,000, 40% of which is on a cash basis. On January 10, the entity collected half of its receivables. During the month, the entity incurred P 40,000 expenses, P 18,000 of which have been paid. An equipment was also bought on account for P 10,000. A withdrawal of P 5,000 was also made. Compute the cash balance as of January 31.
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