QUESTIONS: 1. What should be included as bookshop's expenses? Why? 2. What should not be included as bookshop's expenses? Why?

SWFT Comprehensive Vol 2020
43rd Edition
ISBN:9780357391723
Author:Maloney
Publisher:Maloney
Chapter11: Invest Or Losses
Section: Chapter Questions
Problem 23DQ
Question
QUESTIONS: 1. What should be included as bookshop's expenses? Why? 2. What should not be included as bookshop's expenses? Why?
Eyang Bookstore
By Judith Tabugan
Rhea Gajopo dreamed to have her own bookshop when she was young. She was a girl
with big dreams even at a young age. She loves books so reading became her escapade
as she grows. She finished her degree in Bachelor of Science in Education major in
English Literature and aced the LET 2019. Yet, she felt incomplete and she wanted to
pursue her childhood dream. So, she launched her own bookshop business called Eyang
Bookstore with the initial investment of Php. 500,000.00. During the first year of
operation the books of account reflected an income of Php 50,000.00 and expenses of
Php. 30,000.00. She was doubtful of the recorded expenses, so she reviewed the list of
recorded expenses. Observe the table below showing all her expenses.
Expenses
Amount
Salary Expense
Php 5,000.00
Rent Expense
Php 5,000.00
Utilities Expense (at home)
Php 10,000.00
Utilities Expense (at the store)
Php 3,000.00
Insurance Expense
Php 12,000.00
Transcribed Image Text:Eyang Bookstore By Judith Tabugan Rhea Gajopo dreamed to have her own bookshop when she was young. She was a girl with big dreams even at a young age. She loves books so reading became her escapade as she grows. She finished her degree in Bachelor of Science in Education major in English Literature and aced the LET 2019. Yet, she felt incomplete and she wanted to pursue her childhood dream. So, she launched her own bookshop business called Eyang Bookstore with the initial investment of Php. 500,000.00. During the first year of operation the books of account reflected an income of Php 50,000.00 and expenses of Php. 30,000.00. She was doubtful of the recorded expenses, so she reviewed the list of recorded expenses. Observe the table below showing all her expenses. Expenses Amount Salary Expense Php 5,000.00 Rent Expense Php 5,000.00 Utilities Expense (at home) Php 10,000.00 Utilities Expense (at the store) Php 3,000.00 Insurance Expense Php 12,000.00
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 4 steps with 4 images

Blurred answer
Knowledge Booster
Personal Financial Statements
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
SWFT Comprehensive Vol 2020
SWFT Comprehensive Vol 2020
Accounting
ISBN:
9780357391723
Author:
Maloney
Publisher:
Cengage
SWFT Comprehensive Volume 2019
SWFT Comprehensive Volume 2019
Accounting
ISBN:
9780357233306
Author:
Maloney
Publisher:
Cengage
Personal Finance
Personal Finance
Finance
ISBN:
9781337669214
Author:
GARMAN
Publisher:
Cengage
Individual Income Taxes
Individual Income Taxes
Accounting
ISBN:
9780357109731
Author:
Hoffman
Publisher:
CENGAGE LEARNING - CONSIGNMENT
SWFT Individual Income Taxes
SWFT Individual Income Taxes
Accounting
ISBN:
9780357391365
Author:
YOUNG
Publisher:
Cengage
Essentials of Business Analytics (MindTap Course …
Essentials of Business Analytics (MindTap Course …
Statistics
ISBN:
9781305627734
Author:
Jeffrey D. Camm, James J. Cochran, Michael J. Fry, Jeffrey W. Ohlmann, David R. Anderson
Publisher:
Cengage Learning