If equity at the beginning of the period is $180,000, profit for the period is $90,000 and $25,000 is withdrawn by the owner during the period, equity at the end of the period is:
A)$115,000.
B)$245,000.
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 formula: 
Equity at the end of period = Equity at the beginning + Profit for the period - Owner's withdrawals 
= $180,000 + $90,000 - $25,000 
= $245,000

If Equity at the Beginning of the Period Is $180,000