Ace Company reports revenues of $40,000 and expenses of $31,000. The owner made no additional investments during the period, but withdrew $5,000 cash from the business. After closing entries are recorded, determine the amount of the increase or decrease in the owner’s capital account.
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Ace Company reports revenues of $40,000 and expenses of $31,000. The owner made no additional investments during the period, but withdrew $5,000 cash from the business. After closing entries are recorded, determine the amount of the increase or decrease in the owner’s capital account.
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- Which of the following transactions changes only the mix of assets and does not affect liabilities or stockholders’ equity? A. Borrowed $40,000 from First National Bank B. Purchased land for $50,000 cash C. Received $3,800 for fees earned D. Paid $4,000 for Office salariesA business had the following amounts of assets and liabilities at the beginning and end of a recent year: Assets Liabilities Beginning of the year $ 84,000 $ 36,000 End of the year 126,000 55,000 Determine the profit earned or net loss incurred by the business during the year under each of the following unrelated assumptions: The owner made no additional investments in the business during the year but withdrew $5,050 per month to pay personal living expenses.A company had revenues of $75,000 and expenses of $62,000 for the accounting period. The owner withdrew $8,000 in cash during the same period. Which of the following entries could NOT be a closing entry? a. Debit Income Summary $75,000; credit Revenues $75,000. b. Debit Revenues $75,000; credit Income Summary $75,000. c. Debit Income Summary $62,000, credit Expenses $62,000. d. Debit Income Summary $13,000; credit Owner's, Capital $13,000.
- A business had the following amounts of assets and liabilities at the beginning and end of a recent year: Assets Liabilities Beginning of the year $ 84,000 $ 36,000 End of the year 126,000 55,000 Determine the profit earned or net loss incurred by the business during the year under each of the following unrelated assumptions: The owner withdrew $4,100 per month to pay personal living expenses and invested an additional $81,000 cash in the business.A business had the following amounts of assets and liabilities at the beginning and end of a recent year: Assets Liabilities Beginning of the year $ 84,000 $ 36,000 End of the year 126,000 55,000 Determine the profit earned or net loss incurred by the business during the year under each of the following unrelated assumptions: The owner withdrew no assets during the year but invested an additional $86,000 cash.A business had $52.000 in revenue at the end of its accounting period and $60.000 in Expenses. The owner also withdrew $380 during the period. Prepare the required closing journal entries. If the balance in the capital account was $22400 in the adjusted trial balance (prior to the closing journal entries) what is the balance in the capital account after the closing journal entries?
- At the beginning of the year, the owner’s capital of SLG Company is $300,000 while its liabilities at the end of the year are $180,000. During the year, the owner withdrew cash for his personal use amounting to $80,000 and the results of operations showed revenues of $900,000 and expenses amounted to $320,000. What is the amount of SLG Company’s total assets at the end of the year? — $980,000 Question: If the total liabilities decreased by $25,000 during a period and equity increased by $30,000 during the same period, what is the amount and direction (increase or decrease) of the period’s change in total assets? a) $5,000 decreaseb) $5,000 increasec) $55,000 increased) $55,000 decreaseAt the beginning of the year, the owner’s capital of SLG Company is $300,000 while its liabilities at the end of the year are $180,000. During the year, the owner withdrew cash for his personal use amounting to $80,000 and the results of operations showed revenues of $900,000 and expenses amounted to $320,000. What is the amount of SLG Company’s total assets at the end of the year? a) $620,000b) $120,000c) $480,000d) $980,000Tara Westmont, the proprietor of Tiptoe Shoes, had annual revenues of $186,000, expenses of $104,200, and withdrew $18,400 from the business during the current year. The owner's capital account before closing had a balance of $298,000. The ending owner's capital balance after closing is: __ $186,000 __ $63,400 __ $81,800 __ $361,400 __ $379,800
- K. Canopy, the proprietor of Canopy Services, withdrew $6,200 from the business during the current year. The entry to close the withdrawals account at the end of the year is: __ Debit K Canopy, Withdrawals $6,200; credit Cash, $6,200 __ Debit K. Canopy, Capital $6,200; credit K. Canopy, Withdrawals $6,200 __ Debit K. Canopy, Withdrawals $6,200; credit K. Canopy, Capital $6,200 __ Debit K. Canopy, Capital $6,200, credit Salary Expense $6,200 __ Debit Income Summary $6,200; credit K. Canopy, Capital $6,200For the year ended December 31, a company had revenues of $190,000 and expenses of $114,000. The owner withdrew $38,000 during the year. Which of the following entries could not be a closing entry? __ Debit Income Summary $76,000; credit Owner's, Capital $76,000. __ Debit Owner's Capital $38,000; credit Owner Withdrawals $38,000. __ Debit revenues $190,000; credit Income Summary $190,000. __ Debit Income Summary $114,000. __ Debit Income Summary $190,000; credit revenues $190,000.A sole proprietorship had the following assets and liabilities at the beginning and end of this year Beginning of the year Assets: $119,500 Liabilities: $51,230 End of the year Assets: $172,000 Liabilities: $69,660 a. Owner made no investments in the business and no withdrawals were made during the year b. wner made no investments in the business but withdrew $650 cash per month for personal use c. Owner made no withdrawals during the year but the owner did invest an additional $45,000 cash d. Owner withdrew $650 cash per month for personal use and the owner invested an additional $35,000 cash Determine net income or net loss for the business during the year for each of the above seperate cases: (decreases in equity should be indicated with a minus sign.) a. b. c. d. Beginning of the year—Equity Owner investments Withdrawals by owner Net income (loss) End of the year—Equity
