Jon Winek started the year with a capital balance of $135000. During the year his share of partnership net income was $120000 and he withdrew $22500 from the partnership for personal use. He made an additional capital contribution of $37500 during the year. The amount of Jon Winek's capital balance that will be reported on the year-end balance sheet will be

Question

Quizplus · Accepted Answer

Jon Winek's capital balance at the end of the year can be calculated by adding his beginning capital balance, his share of the partnership net income, and any additional capital contributions, and then subtracting any withdrawals for personal use.

Starting balance: $135000 
Plus share of net income: $120000 
Plus additional capital contribution: $37500

Subtotal: $292500

Minus withdrawal for personal use: $22500

Final capital balance: $270000

Jon Winek Started the Year with a Capital Balance of $135000