Jackson's Small Engine Repair Shop, a proprietorship, started the year with total assets of $60,000 and total liabilities of $40,000. During the year, the business recorded $100,000 in repair revenues, $55,000 in expenses, and Mike Jackson, the owner, withdrew $10,000. Jackson's Capital balance at the end of the year was

Question

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Jackson's Capital balance at the end of the year is $55,000. This is calculated by taking the beginning capital balance of $20,000, adding the net income of $45,000, and subtracting the owner's withdrawals of $10,000.

Jackson's Small Engine Repair Shop, a Proprietorship, Started the Year