The owner of ABC Company invested cash to the business amounting P500,000 and office furniture and equipment which has a fair market value of P210,000. During the year, the owner made an additional investment of P150,000 to increase the working capital of the firm. On December 1, the owner issued a company check for P250,000 to settle his personal loan from Union Bank. Revenues in 2021 totaled P305,000 and expenses amounted to P420,200. How much was owner's capital as of December 31, 2021?

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
icon
Related questions
Question
Please answer the question correctly. Thank you Q39
The owner of ABC Company invested cash to the business amounting P500,000 and
office furniture and equipment which has a fair market value of P210,000. During
the year, the owner made an additional investment of P150,000 to increase the
working capital of the firm. On December 1, the owner issued a company check for
P250,000 to settle his personal loan from Union Bank. Revenues in 2021 totaled
P305,000 and expenses amounted to P420,200.
How much was owner's capital as of December 31, 2021?
Transcribed Image Text:The owner of ABC Company invested cash to the business amounting P500,000 and office furniture and equipment which has a fair market value of P210,000. During the year, the owner made an additional investment of P150,000 to increase the working capital of the firm. On December 1, the owner issued a company check for P250,000 to settle his personal loan from Union Bank. Revenues in 2021 totaled P305,000 and expenses amounted to P420,200. How much was owner's capital as of December 31, 2021?
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 2 steps

Blurred answer
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education