Gordon Vending, a sole proprietorship, had the following balances and transactions during 2015: beginning capital, $40,000; contribution of cash to the business by the owner, $15,000; revenue, $60,000; expenses, $35,000; withdrawal by the owner, $5,000. What is the amount of the ending capital balance?

Question

Quizplus · Accepted Answer

The ending capital balance is calculated as: Beginning capital ($40,000) + Owner's contribution ($15,000) + Revenue ($60,000) - Expenses ($35,000) - Owner's withdrawal ($5,000) = $75,000.

Gordon Vending, a Sole Proprietorship, Had the Following Balances and Transactions