Kelly Chaytor started the year with a capital balance of $28,000. During the year, her share of partnership profit was $16,000 and she withdrew $4,000 from the partnership for personal use. She made an additional capital contribution of $5,000 during the year. The amount of Kelly Chaytor's capital balance that will be reported on the year-end balance sheet will be
A) $33,000.
B) $49,000.
C) $29,000.
D) $45,000.

Question

Quizplus · Accepted Answer

Kelly Chaytor's year-end capital balance is calculated as follows: Starting balance ($28,000) + Profit share ($16,000) - Withdrawals ($4,000) + Additional contribution ($5,000) = $45,000.

Kelly Chaytor Started the Year with a Capital Balance of $28,000