Jessica's Art Studio, a sole proprietorship, began the year with total assets of $80,000 and total liabilities of $50, 500. During the year, the studio generated $120,000 in revenue and incurred $65, 400 in expenses. Additionally, Jessica withdrew $15,000 for personal use. What is Jessica's capital balance at the end of the year? A) $64, 100 B) $39,600 C) $49, 100 D) $69, 100
Jessica's Art Studio, a sole proprietorship, began the year with total assets of $80,000 and total liabilities of $50, 500. During the year, the studio generated $120,000 in revenue and incurred $65, 400 in expenses. Additionally, Jessica withdrew $15,000 for personal use. What is Jessica's capital balance at the end of the year? A) $64, 100 B) $39,600 C) $49, 100 D) $69, 100
Chapter28: Income Taxati On Of Trusts And Estates
Section: Chapter Questions
Problem 18P
Related questions
Question
Transcribed Image Text:Jessica's Art Studio, a sole
proprietorship, began the year with total
assets of $80,000 and total liabilities of
$50, 500. During the year, the studio
generated $120,000 in revenue and incurred
$65, 400 in expenses. Additionally, Jessica
withdrew $15,000 for personal use.
What is Jessica's capital balance at the
end of the year?
A) $64, 100
B) $39,600
C) $49, 100
D) $69, 100
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 2 steps
Recommended textbooks for you