Owner, Juan invested an initial capital amounting P50,000 in order to put up his janitorial services company. During the first year of operations (2020), the company had a revenue of P75,000. But Juan wanted to expand his business so invested additional capital amounting to P50,000 in 2021. In the second year (2021), the company had a net income of P100,000 and Juan withdrew P10,000 for personal use. Compute for the ending capital balance of Juan for the year 2021.

Owner, Juan invested an initial capital amounting P50,000 in order to put up his janitorial services company. During the first year of operations (2020), the company had a revenue of P75,000. But Juan wanted to expand his business so invested additional capital amounting to P50,000 in 2021. In the second year (2021), the company had a net income of P100,000 and Juan withdrew P10,000 for personal use. Compute for the ending capital balance of Juan for the year 2021.

SWFT Essntl Tax Individ/Bus Entities 2020

23rd Edition

ISBN:9780357391266

Author:Nellen

Publisher:Nellen

Chapter18: Comparative Forms Of Doing Business

Section: Chapter Questions

Problem 1BD

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Owner,Juan invested an initial capital amounting P50,000 in order to put up his janitorial services conpany.During the first year of operations (2016),the company had a loss of P25,000.Because of this,Juan invested additional capital amounting to P50,000 in 2017.In the second year (2017),the company had a net income of P100,000 and Juan withdrew P10,000 for personal use.Compute for the ending capital balance of Juan for the year 2017.
Owner, Juan invested an initial capital amounting ₱50,000 in order to put up his janitorial services company. During the first year of operations (2016), the company had a loss of ₱25,000. Because of this, Juan invested additional capital amounting to ₱50,000 in 2017. In the second year (2017), the company had a net income of ₱100,000 and Juan withdrew ₱10,000 for personal use. Compute for the ending capital balance of Juan for the year 2017.
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