The beginning capital balance is $5,350,there are no additional investments but the owner did withdraw $500 during the accounting period.The period's revenue is $5,000 and expenses total $6,500.What is the ending capital balance (after closing entries)?
A)$5,350
B)$2,850
C)$5,850
D)$3,350

Question

Quizplus · Accepted Answer

Beginning capital balance = $5,350
Additional investments = $0
Owner withdrawal = -$500
Revenue = $5,000
Expenses = -$6,500
Net loss (expenses > revenue) = -$1,500

Ending capital balance = Beginning capital balance + Additional investments + Net income (loss) - Owner withdrawals
= $5,350 + $0 - $1,500 - $500
= $3,350

Therefore, the ending capital balance (after closing entries) is $3,350. Option D is correct.

The Beginning Capital Balance Is $5,350,there Are No Additional Investments