Please answer the question correctly. Thank you Q39 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 P420,200.How much was owner's capital as of December 31, 2021?

The owners' capital is calculated as difference between assets and liabilities of the business.

Answered: The owner of ABC Company invested cash…

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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The company bought kitchen equipment (a commercial oven) for $29,000 on November 1, 2021 and signed a $12,000 note payable to help pay for it. The terms provide for semiannual fixed principal payments of $2,000 on May 1 and November 1 of each year, plus interest of 5%. All other furniture, fixture, and equipment were purchased during the year for cash. Recall that the company originally issued 25,930 common shares for $25,930, of which 750 shares were repurchased from the lawyer for $500. Sunrise Bakery Inc. Income Statement Year Ended October 31, 2022 Sales revenue $462,500 Cost of goods sold 231,250 Gross profit 231,250 Operating expenses Salaries and wages expense $92,500 Depreciation expense…
Described below are certain transactions of Pharoah Company for 2021: On May 10, the company purchased goods from Fox Company for $74,900, terms 2/10, n/30. Purchases and accounts payable are recorded at net amounts. The invoice was paid on May 18. 1. On June 1, the company purchased equipment for $96,000 from Rao Company, paying $31,200 in cash and giving a one- year, 9% note for the balance. 2. On September 30, the company discounted at 11% its $220,000, one-year zero-interest-bearing note at Virginia State Bank, receiving $198,000. 3.
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