CTIVITY D: Case Analysis:

Analyze the case and find out if Joe Razon was able to compute the

total assets and total owner’s equity of the business as of the quarter

ended December 30, 2018 correctly? Show the solutions. (20 points)

Joe Razon, the sole proprietor of the photocopying

business that opened October 1, 2018. For the quarter ended

December 30, 2018, the business was able to make revenues of

₱50,000 (all in cash) and it was able to incur expenses of

₱35,000 (all in cash). As the end of the quarter, total liabilities

amounted to ₱50,000. Joe Razon wants to know the business

total assets and total owner’s equity. With the help of his friend

who is an accountant, he arrived at ₱75,000 total assets and

₱25,000 total owner’s equity. Moreover, Joe Razon had a Cash

investment of ₱45,000 cash and Equipment amounting to

₱30,000.​