Beginning balance in Capital is $10 000. Revenues are $200 000. Expenses are $120 000. Drawings are $4 000. The ending balance in Capital is $86 000.

Question

Quizplus · Accepted Answer

The ending balance in Capital is calculated as Beginning balance + Revenues - Expenses - Drawings. In this case, the ending balance is $10,000 + $200,000 - $120,000 - $4,000 = $86,000, which matches the given ending balance.

Beginning Balance in Capital Is $10 000