Jeff Lake started the year with a capital balance of $180,000. During the year, his share of partnership net income was $160,000 and he withdrew $30,000 from the partnership for personal use. He made an additional capital contribution of $50,000 during the year. The amount of Jeff Lake's capital balance that will be reported on the year-end balance sheet will be

Question

Quizplus · Accepted Answer

Jeff Lake's capital balance at the end of the year can be calculated as follows:

Beginning Capital Balance: $180,000
Share of Partnership Net Income: +$160,000
Capital Contribution: +$50,000
Withdrawals: -$30,000

Ending Capital Balance: $360,000

Therefore, the correct answer is D) $360,000.

Jeff Lake Started the Year with a Capital Balance of $180,000