What will be the net profit and capital of Tommy and Charlie based on this Adjusted Trial Balance? DebitCreditCashP 100,000.00 Accounts Payable50,000.00Accounts Receivable200,000.00 Notes Payable50,000.00Inventory, Jan. 1400,000.00 Tommy, Capital650,000.00Furniture and Fixtures100,000.00 Charlie, Capital550,000.00Building (net)400,000.00 Sales800,000.00Tommy, Drawing100,000.00Charlie, Drawing50,000.00Purchases500,000.00Operating expenses250,000.00TOTALP 2,100,000.00P 2,100,000.00Inventory, Jan. 1500,000.00

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Accounting

What will be the net profit and capital of Tommy and Charlie based on this Adjusted Trial Balance?

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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Question

What will be the net profit and capital of Tommy and Charlie based on this Adjusted Trial Balance?

Debit
Credit
Cash
P 100,000.00 Accounts Payable
50,000.00
Accounts Receivable
200,000.00 Notes Payable
50,000.00
Inventory, Jan. 1
400,000.00 Tommy, Capital
650,000.00
Furniture and Fixtures
100,000.00 Charlie, Capital
550,000.00
Building (net)
400,000.00 Sales
800,000.00
Tommy, Drawing
100,000.00
Charlie, Drawing
50,000.00
Purchases
500,000.00
Operating expenses
250,000.00
TOTAL
P 2,100,000.00
P 2,100,000.00
Inventory, Jan. 1
500,000.00

Definition Definition Statement that shows the ending balance of all the ledger accounts of a firm at the end of the accounting period. The trial balance is prepared after all the entries have been posted to the ledger accounts and assists in preparing the final accounts of a firm.

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