The following transactions were made during the first month (January 2022) of Mr. X Carwash's (sole proprietor) business operation:REQUIRED:a) an Income Statement for January 2022b) Balance Sheet as of January 31, 2022. DateJan, 1Jan, 1Jan, 2Jan. 7Jan. 10Jan. 21Jan. 25Jan. 30Jan. 31TransactionMr.X started a Carwash shop and invested P200,000 cash as initial capital.paid P6,000 for shop rent applicable for one month.Bought and consumed shop supplies for the month of January worth P12, 750.Bought 1 desktop computer for P39,000.bought 1 printer on account (credit terms) from Mr. M, worth P15,000.paid electric bill-P2,500Paid water bill- P2,900Received P39.700 in cash for carwash servicespaid employees' salary for the month, P15,000

Name: The following transactions were made during the first month (January 2
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Description: The following transactions were made during the first month (January 2022) of Mr. X Carwash's (sole proprietor) business operation:REQUIRED:a) an Income Statement for January 2022b) Balance Sheet as of January 31, 2022. DateJan, 1Jan, 1Jan, 2Jan. 7Ja

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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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The following transactions were made during the first month (January 2022) of Mr. X Carwash's (sole proprietor) business operation:
REQUIRED:
a) an Income Statement for January 2022
b) Balance Sheet as of January 31, 2022.

Date
Jan, 1
Jan, 1
Jan, 2
Jan. 7
Jan. 10
Jan. 21
Jan. 25
Jan. 30
Jan. 31
Transaction
Mr.X started a Carwash shop and invested P200,000 cash as initial capital.
paid P6,000 for shop rent applicable for one month.
Bought and consumed shop supplies for the month of January worth P12, 750.
Bought 1 desktop computer for P39,000.
bought 1 printer on account (credit terms) from Mr. M, worth P15,000.
paid electric bill-P2,500
Paid water bill- P2,900
Received P39.700 in cash for carwash services
paid employees' salary for the month, P15,000

Definition Definition Financial statement that provides a snapshot of an organization's financial position at a specific point in time. It summarizes a company's assets, liabilities, and shareholder's equity, detailing what the company owns, what it owes, and what is left over for its owners. The balance sheet serves as a crucial tool to assess the financial health and stability of a company, as well as to help management make informed decisions about its future investments and financial obligations.

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