Tara Westmont, the proprietor of Tiptoe Shoes, had annual revenues of$187,000, expenses of $104,700, and withdrew $18,800 from the businessduring the current year. The owner's capital account before closing had abalance of $299,000. The ending owner's capital balance after closing is:Multiple Choice$187,000$82,300$381,300$362,500$63,500

Name: Tara Westmont, the proprietor of Tiptoe Shoes, had annual revenues of
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Description: Tara Westmont, the proprietor of Tiptoe Shoes, had annual revenues of$187,000, expenses of $104,700, and withdrew $18,800 from the businessduring the current year. The owner's capital account before closing had abalance of $299,000. The ending owner

Answered: Tara Westmont, the proprietor of Tiptoe…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Tara Westmont, the proprietor of Tiptoe Shoes, had annual revenues of
$187,000, expenses of $104,700, and withdrew $18,800 from the business
during the current year. The owner's capital account before closing had a
balance of $299,000. The ending owner's capital balance after closing is:
Multiple Choice
$187,000
$82,300
$381,300
$362,500
$63,500

Expert Solution

Step 1

>Owner’s capital balance is the part of Equity.
>It contains the amount of amount invested by the owner and accumulated Net Income or Net Loss, as reduced by the amount of owner’s withdrawals.
>The Owner’s capital balance is increased by the amount of investment and net income, and is decreased by the amount of net loss and withdrawals.

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