What is Rex’s capital balance after closing the revenue and expense accounts to the capital accounts?
What is Rex’s capital balance after closing the revenue and expense accounts to the capital accounts?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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- Rex and Kelsey are partners who share income in the ratio of 3:2. Their capital balances are $95,000 and $140,000 respectively, on January 1. The
partnership generated net income of $40,000 for the year. What is Rex’s capital balance after closing the revenue and expense accounts to the capital accounts? - $71,000
- $119,000
- $146,000
- $111,000
- None of the above.
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