The beginning capital balance is $1,000; there are no additional investments or withdrawals by the owner during the accounting period. The period's revenue is $500 and expenses total $450. What is the ending capital balance (after closing entries)?
A) $1,050
B) $1,500
C) $1,450
D) $50

Question

Quizplus · Accepted Answer

The ending capital balance is calculated by adding the net income (revenue - expenses) to the beginning capital balance. Net income is $500 - $450 = $50. Therefore, the ending capital balance is $1,000 + $50 = $1,050.

The Beginning Capital Balance Is $1,000; There Are No Additional