Davis Company has the following accounts and balances at the end of the year:
Cash, $1,200
Accounts Receivable, $280
Office Equipment, $3,000
Accounts Payable, $1,400
Income from Services, $3,500
Rent Expense, $670
Salaries Expense, $1,000
R. Davis, Capital at the beginning of the year was $2,050. Rob Davis also withdrew $800 from the company during the year. What is R. Davis, Capital, at the end of the year?

Question

Davis Company has the following accounts and balances at the end of the year:
 Cash, $1,200
Accounts Receivable, $280
Office Equipment, $3,000
Accounts Payable, $1,400
Income from Services, $3,500
Rent Expense, $670
Salaries Expense, $1,000
R. Davis, Capital at the beginning of the year was $2,050. Rob Davis also withdrew $800 from the company during the year. What is R. Davis, Capital, at the end of the year?

Quizplus · Accepted Answer

R. Davis, Capital at the end of the year is calculated as: Beginning Capital ($2,050) + Income from Services ($3,500) - Rent Expense ($670) - Salaries Expense ($1,000) - Withdrawals ($800) = $3,080.

Davis Company Has the Following Accounts and Balances at the End