The initial investment of the owner in his business is P75,000. at the end of each year, the total assets of the business amounted to P100,000, which consist of P50,000 cash and P50,000 equipment. The equipment has an unpaid balance of P20,000, the only liability of the business. How much is the owner's equity at the end of the year? provide solution.The initial investment of the owner in his business is P75,000. at the end of each year, the total assets of the business amounted to P100,000, which consist of P50,000 cash and P50,000 equipment. The equipment has an unpaid balance of P20,000, the only liability of the business. How much is the owner's equity at the end of the year? provide solution.

To calculate the owner's equity, the amount of outside liability is subtracted from the total…

Answered: The initial investment of the owner in…

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 initial investment of the owner in his business is P75,000. at the end of each year, the total assets of the business amounted to P100,000, which consist of P50,000 cash and P50,000 equipment. The equipment has an unpaid balance of P20,000, the only liability of the business. How much is the owner's equity at the end of the year? provide solution.
The initial investment of the owner in his business is P75,000. at the end of each year, the total assets of the business amounted to P100,000, which consist of P50,000 cash and P50,000 equipment. The equipment has an unpaid balance of P20,000, the only liability of the business. How much is the owner's equity at the end of the year? provide solution.

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