On September 1, 2021, Feeling Company began a service proprietorship with an initial investment of P400,000. Feeling rendered P800,000 worth of services during September. Collections were made except for P200,000 which were collected the following month. Expenses were incurred in the amount of P400,000, including P100,000 which are to be paid next month. The owner withdrew P60,000 for personal use. In September 30, 2021 financial statement, what amount of capital should be reported under the cash basis accounting?P640,000 P800,000P740,000 P840,000

Cash basis of accounting is a method where the income and expenses are recognized as and when they…

Answered: On September 1, 2021, Feeling Company…

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, 2021, Feeling Company began a service proprietorship with an initial investment of P400,000. Feeling rendered P800,000 worth of services during September. Collections were made except for P200,000 which were collected the following month. Expenses were incurred in the amount of P400,000, including P100,000 which are to be paid next month. The owner withdrew P60,000 for personal use.

In September 30, 2021 financial statement, what amount of capital should be reported under the cash basis accounting?

P640,000 P800,000
P740,000 P840,000

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