Doc's Ribhouse had beginning equity of $52,000; net income of $35,000, and withdrawals by the owner of $12,000. The owner made no investments during the year. Calculate the ending equity.
A) $29,000.
B) $(5,000).
C) $75,000.
D) $5,000.
E) $99,000.

Question

Quizplus · Accepted Answer

Ending Equity = Beginning Equity + Net Income - Withdrawals
Ending Equity = 52,000 + 35,000 - 12,000
Ending Equity = $75,000

Doc's Ribhouse Had Beginning Equity of $52,000; Net Income of $35,000