If equity at the beginning of the period is $177,000,profit for the period is $87,000 and $25,000 is withdrawn by the owner during the period,equity at the end of the period is:
A) $115,000.
B) $239,000.
C) $289,000.
D) cannot be calculated from the information provided.

Question

Quizplus · Accepted Answer

The equity at the end of the period can be calculated using the following formula:
Equity at end of period = Equity at beginning of period + Profit for the period - Owner's withdrawals
= $177,000 + $87,000 - $25,000
= $239,000
Therefore, the correct answer is B.

If Equity at the Beginning of the Period Is $177,000,profit