The J. Godfrey, Capital account has a credit balance of $17,000 before closing entries are made. If total revenues for the period are $55,200, total expenses are $39,800, and withdrawals are $9,000, what is the ending balance in the J. Godfrey, Capital account after all closing entries are made?
A) $8,000.
B) $15,400.
C) $23,400.
D) $17,000.
E) $32,400.

Question

Quizplus · Accepted Answer

To find the ending balance in the J. Godfrey, Capital account after all closing entries are made, we need to subtract the total expenses, withdrawals, and total revenues from the credit balance of the Capital account.

Starting Credit Balance: $17,000
Total Revenues: $55,200
Total Expenses: $39,800
Withdrawals: $9,000

Total Adjustments: $55,200 - $39,800 - $9,000 = $6,400
Ending Balance: $17,000 - $6,400 = $10,600

Therefore, the ending balance in the J. Godfrey, Capital account after all closing entries are made is $23,400 (credit balance of $17,000 - adjustments of $6,400). Therefore, the best choice is C.

The J Godfrey, Capital Account Has a Credit Balance of $17,000