Copper Company's owner's equity at the beginning of August 2009 was $300,000. During the month, the company earned net income of $60,000 and owner's drawings were $20,000. At the end of August 2009, what is the balance in owner's equity?

Question

Quizplus · Accepted Answer

To calculate the ending balance in owner's equity, we start with the beginning balance ($300,000), add net income for the month ($60,000), and subtract owner's drawings for the month ($20,000).

$300,000 (beginning balance) 
+ $60,000 (net income) 
- $20,000 (owner's drawings) 
= $340,000

Therefore, the answer is C, $340,000.

Copper Company's Owner's Equity at the Beginning of August 2009