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On September 1, 2020, Kayo Na Consulting. began a service proprietorship with an initial investment of P400,000. Kayo Na provided P800,000 of services during September. Collections were made except for P200,000 which were paid the following month. Expenses were incurred in the amount of P400,000, including P100,000 which are to be paid next month. The owener withdrew P60,000 against the capital account. In September 30, 2020 financial statement, what amount of capital should be reported under cash basis accounting?     P840,000 P740,000 P800,000 P640,000

On September 1, 2020, Kayo Na Consulting. began a service proprietorship with an initial investment of P400,000. Kayo Na provided P800,000 of services during September. Collections were made except for P200,000 which were paid the following month. Expenses were incurred in the amount of P400,000, including P100,000 which are to be paid next month. The owener withdrew P60,000 against the capital account. In September 30, 2020 financial statement, what amount of capital should be reported under cash basis accounting?     P840,000 P740,000 P800,000 P640,000

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 September 1, 2020, Kayo Na Consulting. began a service proprietorship with an initial investment of P400,000. Kayo Na provided P800,000 of services during September. Collections were made except for P200,000 which were paid the following month. Expenses were incurred in the amount of P400,000, including P100,000 which are to be paid next month. The owener withdrew P60,000 against the capital account. In September 30, 2020 financial statement, what amount of capital should be reported under cash basis accounting?
 
 
P840,000
P740,000
P800,000
P640,000
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