Please answer the question correctly with solution. Thank you. The owner of ABC Company invested cash to the business amounting P500,000 andoffice furniture and equipment which has a fair market value of P210,000. Duringthe year, the owner made an additional investment of P150,000 to increase theworking capital of the firm. On December 1, the owner issued a company check forP250,000 to settle his personal loan from Union Bank. Revenues in 2021 totaledP305,000 and expenses amounted to 420,200.How much was owner's capital as of December 31, 2021?

Owners capital is the owners personal assets invested by him in the business . It could be cash or…

nd equipment which has a fair market value of mer made an additional investment of P150,00 of the firm. On December 1, the owner issued a le his personal loan from Union Bank. Revenue penses amounted to P420,200.

nd equipment which has a fair market value of mer made an additional investment of P150,00 of the firm. On December 1, the owner issued a le his personal loan from Union Bank. Revenue penses amounted to P420,200.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Market efficiency refers to the market's ability to provide investors with all available information about investment options for buying and selling securities. Market efficiency reflects the true value of securities without undervaluing or overvaluing them. When the quality and quantity of information increase, the market becomes more efficient, allowing it to reduce arbitrage and obtain higher market returns from investment. In a well-functioning market, everyone receives all information completely and immediately at no cost. It opens up a plethora of opportunities for investors to access various investment options.

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Please answer the question correctly with solution. Thank you.

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 420,200.
How much was owner's capital as of December 31, 2021?

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