Accounting Equation
1. Filemon Car Repair Shop started the business with total assets of P100,000 and total liabilities of P50,000 on
January 1, 2014. During the year, the business recorded P140,000 in car repair revenue, P85,000 in expenses,
and the owner withdrew P12,000.
Required:
A. Compute for the correct net income of Filemon’s Car Repair shop for 2014.
B. Compute for the correct change (net movement) in Filemon, Capital during the year 2014.
C. Compute for the correct balance of Filemon, Capital Account at the end of the year.