Question

At the end of its first month of operations, Michael's Consulting Services reported net income of $29,200. They also had account balances of: Cash $20,800; Office Supplies, $2,700 and Accounts Receivable $11,400. The owner's total investment for this first month was $5,700. There were no owner withdrawals in the first month in the first month Calculate the ending balance in the Owner's Capital account to be reported on the Statement of Owner's Equity Multiple Choice $34,900 $29,200 $23,500 $8,400 $5,700

Answer 1

Answer:

$34,900

Explanation:

The computation of the ending balance in the Owner's Capital account is shown below:

= Net income + investment

= $29,200 + $5,700

= $34,900

The another method is

Stockholder equity = Total assets - total liabilities

where,

Total assets = Cash + Office supplies + accounts receivable

                    = $20,800 + $2,700 + $11,400

                    = $34,900

And, the total liabilities is zero

Now put these values to the above formula  

So, the value would equal to

= $34,900 - $0

= $34,900