If beginning capital was $25,000, ending capital is $37,000, and the owner's withdrawals were $23,000, the amount of net income or net loss for the period was:

Question

Quizplus · Accepted Answer

The net income can be calculated by adjusting the ending capital for the owner's withdrawals and comparing it to the beginning capital. The calculation is as follows: $37,000 (ending capital) + $23,000 (withdrawals) - $25,000 (beginning capital) = $35,000 net income.

If Beginning Capital Was $25,000, Ending Capital Is $37,000, and the Owner's