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Whats the owners capital at the end of the year based on the statement?
1. capital, january 1 2017 $2,250.
2. additional investment fir the year $1,750.
3. net income for the year $3,500.
4. withdrawals for the year $(2,500)

Respuesta :

ayokenny2001

Answer:

$10,000

Explanation:

Owner's capital is calculated as = Owner's capital at the beginning of the period + Additional investment for the year + Net income - Drawings.

Given that ;

Owner's capital at the beginning = $2,250

Additional investment = $1,750

Net profit = $3,500

Drawings= ($2,500)

= $2,250 + $1,750 + $3,500 - (-$2,500)

= $10,000

Therefore, owner's capital at the end of the year is $10,000

Tundexi

The amount of the owner's capital at the end of the year is $10,000.

The Owner's Capital refers to the amount that a shareholder have invested in a company's business.

  • The formula to use to derive the Owner's capital at end of the year is {Owner's capital at the beginning + Additional investment for the year + Net income - Drawings}

Given Information

Owner's capital at the beginning = $2,250

Additional investment = $1,750

Net profit = $3,500

Drawings = ($2,500)

Owner's capital at end = $2,250 + $1,750 + $3,500 - (-$2,500)

Owner's capital at end = $2,250 + $1,750 + $3,500 + $2,500

Owner's capital at end = $10,000

Therefore, in conclusion, the amount of the owner's capital at the end of the year is $10,000.

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