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this is a problem solving from accounting...
june 2: juan cruz invested P10,000 cash in a barber shop
assets = liabilities + proprietorship
cash P10,000= 0 + P10,000 juan cruz, capital
june 3: the business bought tables and chairs for cash P200
assets = liabilities + proprietorship
cash P9,800 = 0 + p10,000 juan cruz, capital
now the problem is in the following:
june 4:the business bought talclum powder for P100 cash
june 5:the business bought hair lotion from ACME TRADING, P200, payable in 30 days
now what is the assets=liabilities+proprietorship from the following days?(june 4 and june 5)

2007-06-20 22:48:11 · 2 answers · asked by chelsiey 1 in Business & Finance Small Business

pls... make it in a clear statement.....
for example:
june 4: blah...blah...blah....
assets = liabilities + proprietorship
blahhh = blahhh + blahhh
june 5: blah...blah...blah...
assets = liabilities + proprietorship
and pls.. explain.......
thank you very much...
our teacher in this subject is so strict... may you understand.... thanks again=)

2007-06-20 23:04:22 · update #1

2 answers

june 3: the business bought tables and chairs for cash P200
assets = liabilities + proprietorship
cash P9,800 + fixed assets P200 = 0 + 10,000 capital

june 4: the business bought talcum powder for P100 cash
assets = liabilities + proprietorship
Cash P9,700 + fixed assets P200 = 0 + 9,900 capital

june 5:the business bought hair lotion from ACME TRADING, P200, payable in 30 days
assets = liabilities + proprietorship
Cash P9,700 + fixed assets P200 = Liabilities P200 + Capital P9,700

The talcum powder and hair lotion are consumables and would go to reduce capital since they're expenses.

2007-06-21 02:39:52 · answer #1 · answered by Sandy 7 · 0 0

ending balance sheet:

Assets:
Cash 9700
Tables/Chairs 200
Talcum Powder 100
Hair Lotion 200

Liabilities:
Accounts Payable 200

Equity (Proprietorship):
Paid-in Capital: 10,000

2007-06-21 05:57:27 · answer #2 · answered by Flyer 4 · 0 0

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