If equity at the beginning of the period is $177,000, profit for the period is $87,000 and $25,000 is withdrawn by the owner during the period, equity at the end of the period is:
A) $115,000
B) $289,000
C) $239,000
D) Cannot be calculated from the information provided.

Question

Quizplus · Accepted Answer

Equity at the end of the period can be calculated as:
Beginning Equity + Profit - Owner's Withdrawals = Ending Equity
$177,000 + $87,000 - $25,000 = $239,000

If Equity at the Beginning of the Period Is $177,000