Answer to Question #155930 in Accounting for Maeclyne

Question

Compute for the net income

The playdate kiddiegym is owned and managed by cris roxas.The balance of the Cris Roxas ,Capital is P765,430 and P857,340 on December 31, 20X1 and December 31,20X2, respectively.Net income for 20X2 is P115,465.Cr Compute is did not make additional contribution to the business in 20X2.Determine the balance of the Cris Roxas Drawings account on December 31,20X2

Answer 1

$857,340-765,430=91,910$

$115,465-91,910=23,555$

91,910 is retained earnings and 23,555 is account receivable