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Tasya [4]
4 years ago
10

The beginning capital balance shown on a statement of owner's equity is $80,000. Net income for the period is $35,000. The owner

withdrew $18,000 cash from the business and made no additional investments during the period. The owner's capital balance at the end of the period is:Multiple Choice:
A. $133,000;
B. $97,000;
C. $80,000;
D. $63,000.
Business
1 answer:
jonny [76]4 years ago
7 0

Answer:

Correct option is (B)

Explanation:

Given:

Beginning capital = $80,000

Net income = $35,000

Drawings = $18,000

Net income is added to opening capital and deduct drawings to arrive at capital balance at the end.

Capital at the end of the year = opening capital + net income - drawings

                                                 = 80,000 + 35,000 - 18,000

                                                 = $97,000

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