John Smith is the owner of Alpha Technologies Inc. The beginning balance in Smith, Capital was $80,000. The revenues and expenses were $60,000 and $40,000, respectively. No withdrawals were made by Smith during the year. The ending balance in Smith, Capital was $100,000.

Question

Quizplus · Accepted Answer

The beginning balance of Smith, Capital plus the revenues minus the expenses equals the ending balance of Smith, Capital. $80,000 + $60,000 - $40,000 = $100,000. Therefore, the statement is true.

John Smith Is the Owner of Alpha Technologies Inc