The following information is available from the adjusted trial balance of the Harris Vacation Rental Agency. After closing entries are posted, what will be the balance in the Sue Harris, Capital account? $ 125,00
$\begin{array}{lr}
\text { Total revenues } & 0 \
\text { Total expenses } & 60,000 \
\text { Sue Harris, Capital } & 80,000 \
\text { Sue Harris, Withdrawals } & 15,000
\end{array}$ $\begin{array}{lr}
\text { Total revenues } & 0 \
\text { Total expenses } & 60,000 \
\text { Sue Harris, Capital } & 80,000 \
\text { Sue Harris, Withdrawals } & 15,000
\end{array}$
A)$130,000.
B)$65,000.
C)$80,000.
D)$280,000.
E)$145,000.

Question

Quizplus · Accepted Answer

The correct answer is A because the balance in the Sue Harris, Capital account after closing entries are posted is $130,000. This is calculated by adding the beginning balance of $80,000 to the net income of $50,000 ($0 total revenues - $60,000 total expenses) and subtracting the withdrawals of $15,000.

The Following Information Is Available from the Adjusted Trial Balance