The beginning balance in the Lopez,Capital account of a company was $10,000.The revenues and expenses were $200,000 and $170,000,respectively.During the year,Lopez took withdrawals of $3,000.There were no new capital contributions during the year.The ending balance in Lopez,Capital was $40,000.

Question

Quizplus · Accepted Answer

The correct ending balance should be $37,000, calculated as follows: Beginning balance ($10,000) + Revenues ($200,000) - Expenses ($170,000) - Withdrawals ($3,000) = $37,000.

The Beginning Balance in the Lopez,Capital Account of a Company