Mary Jessica's capital statement reveals that her drawings during the year were $50000. She made an additional capital investment of $25000 and her share of the net loss for the year was $10000. Her ending capital balance was $200000. What was Jessica's beginning capital balance?

Question

Quizplus · Accepted Answer

Beginning capital balance + Drawings - Additional capital investment - Share of net loss = Ending capital balance
Let x be Jessica's beginning capital balance.
Then:
x + 50000 - 25000 - 10000 = 200000
x = 235000
Therefore, Jessica's beginning capital balance was $235000.

Mary Jessica's Capital Statement Reveals That Her Drawings During the Year