A merchandiser uses a perpetual inventory system.The beginning Owner,Capital balance of the merchandiser was $130,000.During the year,Sales Revenue amounted to $80,000,Sales Returns and Allowances were $2,000,Sales Discounts were $4,000,Cost of Goods Sold was $40,000,and all other expenses totaled $12,000.The company paid $27,000 in withdrawals to the owner.The closing balance of Owner,Capital would be ________.
A)$129,000
B)$125,000
C)$118,000
D)$130,000

Question

Quizplus · Accepted Answer

B)
The closing journal entries would be:
 11ea8a42_4f2c_ec26_8b44_8bf5737fe4c6_TB5024_00 11ea8a42_4f2c_ec27_8b44_638cac7f4526_TB5024_00 11ea8a42_4f2c_ec28_8b44_d31315be8e0e_TB5024_00 11ea8a42_4f2c_ec29_8b44_c3076b3cc67b_TB5024_00 Closing balance of Owner,Capital:
 11ea8a42_4f2d_133a_8b44_23af782473a6_TB5024_00

A Merchandiser Uses a Perpetual Inventory System