At the start of the year, the balance on Sara's capital account was $55,689. During the year Sara made drawings of S16,600 and the net profit for the year was $17500.What is the balance on Sara's capital account at the end of the year?OA S56.589B. $30,069OC $4,789O D. $62,189

Lets understand the basics. For calculating ending balance of capital account, we will need to use…

At the start of the year, the balance on Sara's capital account was $55.689. During the year Sara made drawings of $16G00 and the net profit for the year was $17500. What is the balance on Sara's capital account at the end of the year? OA $56.589 B. 530,069 OC S4.789 OD $62,189

At the start of the year, the balance on Sara's capital account was $55.689. During the year Sara made drawings of $16G00 and the net profit for the year was $17500. What is the balance on Sara's capital account at the end of the year? OA $56.589 B. 530,069 OC S4.789 OD $62,189

College Accounting (Book Only): A Career Approach

13th Edition

ISBN:9781337280570

Author:Scott, Cathy J.

Publisher:Scott, Cathy J.

Chapter5: Closing Entries And The Post-closing Trial Balance

Section: Chapter Questions

Problem 7DQ: Write the third closing entry to transfer the net income or net loss to the P. Hernandez, Capital...

See similar textbooks

Related questions

Q: The following information relates to Wilson, Inc.'s equipment lease with an inception date of Januar...

A: Answer:- Correct Option is d. $ 20,278.

Q: The NiceWay Corporation's statement of financial position shows the total stockholders' equity of P5...

A: Stockholder's equity: Stockholder's equity refers to the net asset of the company available to the s...

Q: Transferred cash from a personal bank account in exchange for stock, $50,000 Purchased $8000 of merc...

A: Introduction: Journals: Recording of a business transactions in a chronological order. First step in...

Q: If an employee has the chance of receiving cash in lieu of lodging w business reasons, the amount is...

A: Lodging refers to the facility that is provided for accommodation as well as some other basic facili...

Q: 3. Why do retained carnings not increase by the amount of June net income?

A: Retained Earnings are adjusted with the following transactions: 1) Net Profit or Loss for the year 2...

Q: Walmart leases equipment to Staples on Jan 1, 2020. The lease is appropriately recorded as a purchas...

A: Lease: A lease refers to an agreement whereas the lessor transfers an asset to the lessee in return ...

Q: Garden Sales, Incorporated, sells garden supplies. Management is planning its cash needs for the sec...

A: Cash Budget The purpose of preparing the cash budget to know the total movement of cash inflows and ...

Q: old X, Inc. uses the following information when preparing their flexible budget: direct materials of...

A: Solution: Flexible budget is the budget which represents budgeted cost at different levels of produc...

Q: 3) Misnap is a manufacturing firm. In April, it had a beginning inventory balance in its raw materia...

A: Formula: Raw materials used = Beginning inventory + Net purchases - Ending inventory

Q: The formula "(Sales Revenue – Cost of Goods Sold) + Sales Revenue" produces:

A: The income statement represents the net profit or net loss of the company that is calculated by dedu...

Q: Long-term solvency ratios Total debt ratio Debt-equity ratio Equity multiplier Times interest earned...

A: Long-term solvency ratio:- It is calculated to check the firm's long-term ability to meet its financ...

Q: Lucia Company reported cost of goods sold for Year 1 and Year 2 as follows: Year 1 Year 2 Beginning ...

A: Calculation of Correct Cost of Goods Sold Amount Beginning Inventory $ 145,000 A...

Q: A specific model of computer servers are being sold by Company A for $26,700 each, offering trade di...

A: Solution:- Given, Computer servers sold by Company A = $26,700 Offering trade discounts = 8% and 5% ...

Q: Lamp Light Limited (LLL) manufactures lampshades. It applies variable overhead on the basis of direc...

A: Since you have posted question with multiple sub-parts we will do the first three sub-parts for you ...

Q: View Palicies Current Attempt in Progress On October 1, Benji's Bicycle Store had an inventory of 20...

A: Solution Golden rules of accounting- 1- Real a/c- Debit what comes in .Credit what goes out. 2-Perso...

Q: Prepare Statement of Comprehensive Income and Statement of Financial Position as at 31 Dec 2021.

A: We are given the trial balance of Zombie Berhad as on 31st Dec 2021 along with some additional infor...

Q: The books of Spaghetti Company disclosed a cash balance of P691,720 on June 30. The bank statement a...

A: Sometimes due to certain reasons, the balance of the company cash book doesn't matches with the bank...

Q: At each reporting date, companies adjust debt investments which fails in cash flows test to fair val...

A: The question is related to the IFRS 9 Financial Instruments.

Q: Beginning inventory, purchases, and sales for Item Copper are as follows: Mar. 1 Inventory 450 units...

A: Under FIFO method, using perpetual inventory system, value of ending inventory and cost of goods sol...

Q: - only 83 chil tendance to S2,000. If th firct

A: Social value =2000 Total Additional social value with construction of new school = 83 x 2000 = 16600...

Q: Example 4-12 GROSSING-UP. Cotter Company wants to award a $4,000 bonus to Donna D'Amico. In additio...

A: In this question, we have to find out the gross Bonus and net bonus amount and the blanks given to ...

Q: Which of the following is true with regards to the accrued interest on bonds payable that are sold b...

A: The accrued interest expense is the interest due for payment but not paid yet. The accrued interest...

Q: Cobb Company's accounting records show the following at the year ending on December 31, 2015: Purcha...

A: Cost of goods sold = Cost of goods available for sale - Ending inventory where, Cost of goods availa...

Q: On January 2, 2021, Santos Company invested in a 4 –year, 10% bond with face value of P6,000,000 in ...

A: According to the question Santos Company purchased a 4-year, 10 % bond with a face value of P 6,000...

Q: Sam and Devon agree to go into business together selling college-licensed clothing. According to the...

A: As per TCJA, Non-taxable transaction under Section 351 (i.e., no gain or loss is recognized) ,only i...

Q: Dr. King decided to put up a medical clinic. Below are the transactions for the month of July. Requi...

A: The unadjusted trial balance is the listing of general ledger account balances at the end of a rep...

Q: All expenses incurred while traveling away from a tax home during a business trip True False

A: Expense allowed as deductible based on nature and relevance. Following is the correct answer.

Q: 8. A company purchased $4,000 worth of merchandise. Transportation costs were an additional $350. Th...

A: In this question, we will find out the total amount paid for merchandise.

Q: You have the followinginformation for Oriole inc. Oriole inc.uses the periodic method of accounting ...

A: Income Statement Specific Id. FIFO LIFO a. Sales Revenue (2300x1.05 + 5000x1.25) $8,665 $8,66...

Q: Malachi Department Store starts its business on May 1, 2022 and completes the following transactions...

A: Credit Card Sales are the sales where the customers make payments through credit cards. The money tr...

Q: On April 1, 2020, Quicke Mart issued $1,000,000, 9% bonds at par plus accrued interest dated January...

A: Bond is the debt security that investors uses to reduce the risk and increase stable return from the...

Q: Bounce Back Insurance Company carries three major lines of insurance: auto, workers' compensa- tion,...

A: Product profitability analysis is the practice of connecting a company's total profit to the profit ...

Q: Hal, Dal, & Stal Dairy Farmers, Inc., produces whole milk, 2% milk, and cream. The joint cost of...

A: Under Market Value method, joint costs are allocated on the basis of joint costs of all products pro...

Q: The following information is available for Dennehy Company: $390,000 Sales Revenue Freight-in $30,00...

A: Cost of goods sold = Beginning inventory + Purchases - Purchase returns and allowances + Freight-i...

Q: Accounting for Income Taxes Cullumber Corporation has one temporary difference at the end of 2020 th...

A: Lets understand the basics. When there is taxable temporary difference between the tax liability as ...

Q: 3) Misnap is a manufacturing firm. In April, it had a beginning inventory balance in its raw materia...

A: Lets understand the basics. For calculating raw material used, we need to use below formula. Raw mat...

Q: When an owner-occupied property is transferred to investment property at fair value, a decrease in t...

A: Investment Property: The acquisition of an investment property is made with the purpose of generatin...

Q: Required: 1. What is the company's contribution margin (CM) ratio?

A: In this question, we have to compute the company's CM ratio

Q: Which of the following is not true of the balanced scorecard approach to performance measurement? a...

A: A balanced scorecard is a strategic management performance metric that helps companies identify and ...

Q: Assume an investor purchases bonds at a premium the bonds are to be held as a long-term investment w...

A: When a Bond is issued at premium, the interest revenue is always less than periodic amount of cash r...

Q: Zing Cell Phone Company entered into the following transactions involving current liabilities during...

Q: a. the distortionary effect of taxes, making them more popular compared to Treasuries b. the distort...

A: Municipal Bond Municipal Bond which can be made available either for tax exempt basis or taxable bas...

Q: GameGirl, Incorporated, has the following transactions during August. August 6 Sold 88 handheld game...

A: Under perpetual inventory system, inventory and cost of goods sold are updated for each sale/purchas...

Q: Retiring allowances are also known as: Multiple Choice Lieu of notice Parting gifts Bonuses Suppleme...

A: Retiring Allowances are also known as Severance Pay. These are the allowances are paid to employees ...

Q: Using the following data, prepare the operating activities section of a statement of cash flows for ...

A: The question is related to Cash Flow Statement. The Cash Flow Statement is summary of cash receipts ...

Q: A record of employment must be issued when an employee with a regular work schedule is expecled to I...

A: In the Given case scenario, This statement is false: A record of employment must be issued when an ...

Q: What is the compound amount and compound interest of $36,000 invested at 12% com- poun...

A: Compound interest: this is used in case of lump-sum money accumulates in the future if interest is c...

Q: On March 12, Fret Company sold merchandise in the amount of $7,800 to Babson Company, with credit te...

A: As per net method of accounting, it assumes that customer will pay within discount period hence it r...

Q: i need that last two parts (D AND E)

A: 2021 2022 Units Produced 60000 50000 Units Sold 54000 54000 Selling Price per Unit $ ...

Q: First Time Corporation conducted an IPO, issuing 2 million common shares with a par value of P0.25 t...

A: Calculation of equity account and market capitalization end of first year are as follows

Question

At the start of the year, the balance on Sara's capital account was $55,689. During the year Sara made drawings of S16,600 and the net profit for the year was $17500.
What is the balance on Sara's capital account at the end of the year?
OA S56.589
B. $30,069
OC $4,789
O D. $62,189

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

Net Income (or Loss) and Retained Earnings The following information is available from the records of Prestige Landscape Design Inc. at the end of the year: Required Use the previous information to answer the following questions. What is Prestiges net income for the year? What is Prestiges Retained Earnings balance at the end of the year? What is the total amount of Prestiges assets at the end of the year? What is the total amount of Prestiges liabilities at the end of the year? How much owners equity does Prestige have at the end of the year? What is Prestiges accounting equation at the end of the year?
Using the January 1 and December 31, 20Y8, data given in Question 10, answer the following question: If Sylvester Consulting paid $18,000 of dividends during 20Y8, what was the amount of net income for 20Y8?
Brandt Corporation had sales revenue of 500,000 for the current year. For the year, its cost of goods sold was 240,000, its operating expenses were 50,000, its interest revenue was 2,000, and its interest expense was 12,000. Brandts income tax rate is 30%. Prepare Brandts multiple-step income statement for the current year.
Net income and dividends The income statement of a corporation for the month of February indicates a net income of $32,000. During the same period, $40,000 in cash dividends were paid. Would it be correct to say that the business Incurred a net loss of $8000 during the month? Discuss.
FedEx Corporation had the following revenue and expense account balances (in millions) for a recent year ending May 31: a.Prepare an income statement. b.Compare your income statement with the income statement that is available at the FedEx Corporation Web site, (http://investors.fedex.com). Click on Annual Report and Download Annual Report. What similarities and differences do you see?
What is the amount of ending capital shown on the balance sheet for Floress Catering? a. 22,000 b. 20,000 c. 45,500 d. 32,800
Juroe Company provided the following income statement for last year: Juroes balance sheet as of December 31 last year showed total liabilities of 10,250,000, total equity of 6,150,000, and total assets of 16,400,000. Refer to the information for Juroe Company on the previous page. Also, assume that Juroes total assets at the beginning of last year equaled 17,350,000 and that the tax rate applicable to Juroe is 40%. Required: Note: Round answers to two decimal places. 1. Calculate the average total assets. 2. Calculate the return on assets.
Prepare a statement of owners equity for The Lindal Clinic for the year ended December 31. P. Lindals capital amount on January 1 was 124,000, and there was an additional investment of 7,000 on May 12 and withdrawals of 31,500 for the year. Net income for the year was 20,418.
The Accounting Equation Ginger Enterprises began the year with total assets of $500,000 and total liabilities of $250,000. Using this information and the accounting equation, answer each of the following independent questions. What was the amount of Gingers owners equity at the beginning of the year? If Gingers total assets increased by $100,000 and its total liabilities increased by $77,000 during the year, what was the amount of Gingers owners equity at the end of the year? If Gingers total liabilities increased by $33,000 and its owners equity decreased by $58,000 during the year, what was the amount of its total assets at the end of the year? If Gingers total assets doubled to $1,000,000 and its owners equity remained the same during the year, what was the amount of its total liabilities at the end of the year?
Prince Corporations accounts provided the following information at December 31, 2019: What should be the current balance of retained earnings? a. 520,000 b. 580,000 c. 610,000 d. 670,000
The Accounting Equation Using the accounting equation, answer each of the following independent questions. Burlin Company starts the year with $100,000 in assets and $80,000 in liabilities. Net income for the year is $25,000, and no dividends are paid. How much is owners equity at the end of the year? Chapman Inc. doubles the amount of its assets from the beginning to the end of the year. Liabilities at the end of the year amount to $40,000, and owners equity is $20,000. What is the amount of Chapmans assets at the beginning of the year? During the year, the liabilities of Dixon Enterprises triple in amount. Assets at the beginning of the year amount to $30,000, and owners equity is $10,000. What is the amount of liabilities at the end of the year?
Assume that a lawyer bills her clients $15000 on June 30, for services rendered during June. The lawyer collects $8500 of the billings during July and the remainder in August. Under the accrual basis of accounting, when would the lawyer record the revenue for the fees? A. June, $15,000; July, $0; and August, $0 B. June, $0; July, $6,500; and August, $8,500 C. June, $8,500; July, $6,500; and August, $0 D. June, $0; July, $8,500; and August, $6,500