Sole Proprietorships (Appendix) On May 1, Chong Yu deposited $120,000 of his own savings in a separate
Question:
Sole Proprietorships (Appendix) On May 1, Chong Yu deposited $120,000 of his own savings in a separate bank account to start a printing business. He purchased copy machines for $42,000. Expenses for the year, including depreciation on the copy machines, were $84,000. Sales for the year, all in cash, were $108,000. Chong withdrew $12,000 during the year.
Required
1. What is the balance in Chong’s capital account at the end of the year?
2. Explain why the balance in Chong’s capital account is different from the amount of cash on hand.
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1 The effect of the investment by the owner on May 1 can be identified and analyzed as follows Finan...View the full answer
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Related Book For
Using Financial Accounting Information The Alternative to Debits and Credits
ISBN: 978-1133161646
7th Edition
Authors: Gary A. Porter, Curtis L. Norton
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