After all appropriate closing entries to the following accounts have been made, what will be the balance in the Jeff Corvette, Capital account? $$\begin{array} { | l | r | }
\hline \text { Service fees revenue } & \$ 140,000 \
\hline \text { Various experses } & 60,000 \
\hline \text { Jeff Corvette, capital } & 80,000 \
\hline \text { Jeff Corvette, withdrawals } & 15,000 \
\hline
\end{array}$$
A) $65,000
B) $80,000
C) $130,000
D) $145,000
E) $280,000

Question

After all appropriate closing entries to the following accounts have been made, what will be the balance in the Jeff Corvette, Capital account? $$\begin{array} { | l | r | } 
\hline \text { Service fees revenue } & \$ 140,000 \
\hline \text { Various experses } & 60,000 \
\hline \text { Jeff Corvette, capital } & 80,000 \
\hline \text { Jeff Corvette, withdrawals } & 15,000 \
\hline
\end{array}$$
A) $65,000
B) $80,000
C) $130,000
D) $145,000
E) $280,000

Quizplus · Accepted Answer

Without the details of the accounts given, it is impossible to determine the exact balance in the Jeff Corvette, Capital account. However, closing entries are made to transfer net income or net loss to the owner's capital account. Therefore, the correct answer would be the sum of all revenues and gains minus the sum of all expenses and losses, which would result in the net income. This net income would then be added to the beginning balance of the Jeff Corvette, Capital account. The only answer choice that could be reasonably close to the correct answer based on this logic would be D, $145,000.

After All Appropriate Closing Entries to the Following Accounts Have