Tara Westmont, the proprietor of Tiptoe Shoes, had annual revenues of $185,000, expenses of $103,700, and withdrew $18,000 from the business during the current year. The owner's capital account before closing had a balance of $297,000.
- The ending owner's capital balance after closing is:

Question

Quizplus · Accepted Answer

The ending owner's capital balance is calculated by adding the net income to the beginning capital and then subtracting any withdrawals. Net income is $185,000 - $103,700 = $81,300. The ending capital is $297,000 + $81,300 - $18,000 = $360,300.

Tara Westmont, the Proprietor of Tiptoe Shoes, Had Annual Revenues