Question

At the start of the period, a business has total assets of ₱500,000 and total liabilities of ₱300,000. During the period, the business earned total income of ₱1,000,000 and total expenses of ₱640,000. No additional investments or withdrawals were made by the owner. Total assets at the end of the period were ₱830,000. How much is the total liabilities at the end of the period? A. 280,000 B. 270,000. C. 260,000 D. 240,000

Name: at the start of the period a business has total assets of 500000 and total liabilities of 300000 during the period the business earned total income of 1000000 and total expenses of 640000 no 16702
Uploaded: 2022-04-22T19:16:55-08:00
Duration: 4 min 57 s
Channel: Rahul Mahato
Description: at the start of the period a business has total assets of 500000 and total liabilities of 300000 during the period the business earned total income of 1000000 and total expenses of 640000 no 16702

          At the start of the period, a business has total assets of ₱500,000 and total liabilities of ₱300,000. During the period, the business earned total income of ₱1,000,000 and total expenses of ₱640,000. No additional investments or withdrawals were made by the owner. Total assets at the end of the period were ₱830,000. How much is the total liabilities at the end of the period? A. 280,000 B. 270,000. C. 260,000 D. 240,000

Added by Daniela S.

Horngren’s Cost Accounting

Srikant M. Datar, Madhav V. Rajan 16th Edition

Instant Answer

Solved by Expert Rahul Mahato

04/22/2022

Step 1

Owner's equity can be calculated using the accounting equation: \[ \text{Owner's Equity} = \text{Total Assets} - \text{Total Liabilities} \] \[ \text{Owner's Equity} = \â‚±500,000 - \â‚±300,000 = \â‚±200,000 \] Show more…

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At the start of the period, a business has total assets of ₱500,000 and total liabilities of ₱300,000. During the period, the business earned total income of ₱1,000,000 and total expenses of ₱640,000. No additional investments or withdrawals were made by the owner. Total assets at the end of the period were ₱830,000. How much is the total liabilities at the end of the period? A. 280,000 B. 270,000. C. 260,000 D. 240,000