On March 1, Ms. Ann Joy established AJ Beauty Salon. She invested P750,000 in the business and a laptop worth P60,000. She paid rent of P10,000 and bought equipment for P30,000 cash. Cash collection from walk-in customers amounted to P150,000. She bought beauty supplies for P7,000 cash and bought salon furniture worth P80,000 on account. Ms. Ann had major repairs in her residence amounting to P550,000 which was paid by the business. Collections of accounts receivable totaled P90,000 and accounts payable paid totaled P45,000. At the end of the month, salaries of beauticians paid amounted to P30,000. Payments made to MERALCO and MAYNILAD are P12,000 and P3,400, respectively. Salon net income for the month is P180,000. Required: Give the cash balance at the end of the month. (Hint: Prepare the T-Account for cash to get the cash balance at the end of the month.)
On March 1, Ms. Ann Joy established AJ Beauty Salon. She invested P750,000 in the business and a laptop worth P60,000. She paid rent of P10,000 and bought equipment for P30,000 cash. Cash collection from walk-in customers amounted to P150,000. She bought beauty supplies for P7,000 cash and bought salon furniture worth P80,000 on account. Ms. Ann had major repairs in her residence amounting to P550,000 which was paid by the business. Collections of accounts receivable totaled P90,000 and accounts payable paid totaled P45,000. At the end of the month, salaries of beauticians paid amounted to P30,000. Payments made to MERALCO and MAYNILAD are P12,000 and P3,400, respectively. Salon net income for the month is P180,000. Required: Give the cash balance at the end of the month. (Hint: Prepare the T-Account for cash to get the cash balance at the end of the month.)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:On March 1, Ms. Ann Joy established AJ Beauty Salon. She invested P750,000 in the business and a
laptop worth P60,000. She paid rent of P10,000 and bought equipment for P30,000 cash. Cash collection
from walk-in customers amounted to P150,000. She bought beauty supplies for P7,000 cash and bought
salon furniture worth P80,000 on account. Ms. Ann had major repairs in her residence amounting to
P550,000 which was paid by the business. Collections of accounts receivable totaled P90,000 and
accounts payable paid totaled P45,000. At the end of the month, salaries of beauticians paid amounted
to P30,000. Payments made to MERALCO and MAYNILAD are P12,000 and P3,400, respectively. Salon net
income for the month is P180,000.
Required:
Give the cash balance at the end of the month.
(Hint: Prepare the T-Account for cash to get the cash balance at the end of the month.)
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