Bob Jones is a sole proprietor who began his business in 2016 with $20,000 cash. During the year 2016, he earned revenues of $180,000, incurred expenses of $75,000, and withdrew $120,000. Which of the following is true for the sole proprietorship?
A)The net income is $120,000.
B)The drawing account will be closed with a credit of $100,000.
C)The owner's equity at the end of 2016 is $125,000.
D)The capital account balance at the end of year 2016 is $5,000.

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The Answer of Bob Jones is a sole proprietor who began his business in 2016 with $20,000 cash. During the year 2016, he earned revenues of $180,000, incurred expenses of $75,000, and withdrew $120,000. Which of the following is true for the sole proprietorship?
A)The net income is $120,000.
B)The drawing account will be closed with a credit of $100,000.
C)The owner's equity at the end of 2016 is $125,000.
D)The capital account balance at the end of year 2016 is $5,000.

Bob Jones Is a Sole Proprietor Who Began His Business