The beginning capital balance is $4,350, 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) $2,350

Question

Quizplus · Accepted Answer

The calculation for the ending capital balance (after closing entries) is:

Beginning capital balance + Revenue - Expenses - Owner's Withdrawals = Ending capital balance
$4,350 + $5,000 - $6,500 - $500 = $2,350

Therefore, the ending capital balance is $2,350.

The Beginning Capital Balance Is $4,350, There Are No Additional