The beginning capital balance shown on a statement of owner's equity is $80,000. Net income for the period is $37,000. The owner made no additional investments during the period. The owner's capital balance at the end of the period is $96,000. The amount the owner withdrew for personal use during the period is
A)$37,000.
B)$16,000.
C)$80,000.
D)$21,000.

Question

Quizplus · Accepted Answer

The owner's withdrawals can be calculated by adjusting the beginning capital balance and net income to match the ending capital balance. Starting with $80,000 and adding the net income of $37,000 gives $117,000. To reach the ending balance of $96,000, the owner must have withdrawn $21,000 ($117,000 - $96,000).

The Beginning Capital Balance Shown on a Statement of Owner's