How much was the increase (decrease) in the total Additional Paid In Capital?

Financial Accounting
14th Edition
ISBN:9781305088436
Author:Carl Warren, Jim Reeve, Jonathan Duchac
Publisher:Carl Warren, Jim Reeve, Jonathan Duchac
Chapter13: Corporations: Organization, Stock Transactions, And Dividends
Section: Chapter Questions
Problem 3PA: The following selected accounts appear in the ledger of EJ Construction Inc. at the beginning of the...
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NEED ASAP. Solve correctly and show your computations.

The Corporation shareholders’ equity section of the Statement of Financial Position includes the following accounts and balances:

  

     Ordinary Share Capital, P100 par, 5,000 shares issued P500,000

  

     Ordinary Share Premium 50,000

  

     Retained earnings 750,000

  Assuming a major shareholder donated 5,000 shares when the market value of the share capital was P140 per share, and was recorded as a debit to Treasury Shares and credit to Donated Capital. How much was the increase (decrease) in the total Additional Paid In Capital? Put a parenthesis if your answer is decrease.

 

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