The owner's capital account has a January 1, 2019, balance of $59,000. The owner's withdrawals account has a balance of $25,600 for the year ending December 31, 2019. The income summary account contains a debit for $20,500 and a credit for $56,900. The balance in the owner's capital account on December 31, 2019, is:

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The owner's capital account balance on December 31, 2019, is calculated by starting with the January 1, 2019, balance of $59,000, adding the net income from the income summary account (credit of $56,900 minus debit of $20,500 equals $36,400 net income), and subtracting the owner's withdrawals of $25,600. This results in a new balance of $69,800 ($59,000 + $36,400 - $25,600).

The Owner's Capital Account Has a January 1, 2019, Balance