Tara Westmont,the proprietor of Tiptoe Shoes,had annual revenues of $185,000,expenses of $103,700,and withdrew $18,000 from the business during the current year.The owner's capital account before closing had a balance of $297,000.The ending owner's capital balance after closing is:

Question

Quizplus · Accepted Answer

The ending owner's capital balance is calculated by adding the net income to the beginning capital balance and then subtracting any withdrawals. Net income is revenues minus expenses, which is $185,000 - $103,700 = $81,300. The ending capital balance is $297,000 (beginning balance) + $81,300 (net income) - $18,000 (withdrawals) = $360,300.

Tara Westmont,the Proprietor of Tiptoe Shoes,had Annual Revenues of $185,000,expenses