Answer:
Net income for the year $ 15,200
Explanation:
We need to make a schedule of changes in Capital to arrive at the net income.
Opening Balance Capital $ 25,000
Add: Investments during the year $ 53,000
Less: Withdrawals during the year <u>($ 28,350)</u>
Ending balance after movements $49,650
The net income for the year adds ro the Capital Account, so since the given Capital account balance on December 31 is $ 64,850, the balancing figure between the year end balance and the adjusted balance in the capital account represents the net income for the year.
Ending balance Capital account - Adjusted opening balance = Net Income for the year
$ 64,850 - $ 49,650 = $ 15,200 equals net income for the year
