Sarah's Flower Shop, a proprietorship, began the year with total assets of $75,000 and total liabilities of $45,000. During the year, the business recorded $125,000 in sales revenue, $68,000 in expenses, and Sarah withdrew $12,000 for personal use. Sarah's capital balance at the end of the year was: a) $75,000 b) $70,000 c) $65,000 d) $80,000
Sarah's Flower Shop, a proprietorship, began the year with total assets of $75,000 and total liabilities of $45,000. During the year, the business recorded $125,000 in sales revenue, $68,000 in expenses, and Sarah withdrew $12,000 for personal use. Sarah's capital balance at the end of the year was: a) $75,000 b) $70,000 c) $65,000 d) $80,000
Chapter28: Income Taxation Of Trusts And Estates
Section: Chapter Questions
Problem 6BCRQ
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Transcribed Image Text:Sarah's Flower Shop, a proprietorship, began the year with total assets
of $75,000 and total liabilities of $45,000. During the year, the
business recorded $125,000 in sales revenue, $68,000 in expenses,
and Sarah withdrew $12,000 for personal use. Sarah's capital balance
at the end of the year was:
a) $75,000
b) $70,000
c) $65,000
d) $80,000
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