Matcha Company reported the following changes in all the account balances for 2021, except for retained earnings: Increase (Decrease) Increase (Decreasel P(380,000) Cash Accounts payable Bonds payable P790,000 Accounts Receivable, net 2,400,000 820,000 Inventory 1,270,000 Share capital 1,250,000 Investments (470,000) Share premium 130,000 There were no entries in retained earnings account except for the net income and a divided declaration of P190,000 which was paid in the current year.

Survey of Accounting (Accounting I)
8th Edition
ISBN:9781305961883
Author:Carl Warren
Publisher:Carl Warren
Chapter8: Liabilities And Stockholders' Equity
Section: Chapter Questions
Problem 8.1.2MBA
icon
Related questions
icon
Concept explainers
Question

What is the amount of increase (decrease) in capital?

Matcha Company reported the following changes in all the account balances for 2021, except for
retained earnings:
Increase (Decrease)
Increase (Decrease)
Cash
Accounts payable
P(380,000)
820,000
P790,000
Accounts Receivable, net
2,400,000
Bonds payable
Inventory
1,270,000
Share capital
1,250,000
Investments
(470,000)
Share premium
130,000
There were no entries in retained earnings account except for the net income and a divided
declaration of P190,000 which was paid in the current year.
Transcribed Image Text:Matcha Company reported the following changes in all the account balances for 2021, except for retained earnings: Increase (Decrease) Increase (Decrease) Cash Accounts payable P(380,000) 820,000 P790,000 Accounts Receivable, net 2,400,000 Bonds payable Inventory 1,270,000 Share capital 1,250,000 Investments (470,000) Share premium 130,000 There were no entries in retained earnings account except for the net income and a divided declaration of P190,000 which was paid in the current year.
Expert Solution
steps

Step by step

Solved in 3 steps

Blurred answer
Knowledge Booster
Cost of Capital
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
Survey of Accounting (Accounting I)
Survey of Accounting (Accounting I)
Accounting
ISBN:
9781305961883
Author:
Carl Warren
Publisher:
Cengage Learning
Intermediate Accounting: Reporting And Analysis
Intermediate Accounting: Reporting And Analysis
Accounting
ISBN:
9781337788281
Author:
James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:
Cengage Learning