Accounting 26th Edition by Carl Warren,James Reeve,Jonathan Duchac

تمرين 36

Capital account balance
As of January 1, Terrace Waters, Capital, had a credit balance of $314,000. During the year, withdrawals totaled $10,000, and the business incurred a net loss of $320,000.
a. Compute the balance of Terrace Waters, Capital, as of the end of the year.
b. Assuming that there have been no recording errors, will the balance sheet prepared at December 31 balance Explain.