Question

Jon winek started the year with a capital balance of $135,000. during the year, his share of partnership net income was $120,000 and he withdrew $22,500 from the partnership for personal use. he made an additional capital contribution of $37,500 during the year. the amount of jon wineks capital balance that will be reported on the year-end balance sheet will be

Answer 1

Question: The amount of jon wineks capital balance that will be reported on the year-end balance sheet will be

Given: Starting Capital, $135,000
additional capital contribution of $37,500
partnership net income was $120,000
withdrew $22,500 from the partnership for personal use
(at the closing entry partnership net income would be included in the capital account)


Operation: Addition and subtraction

Number Sentence: Starting capital $135,000+$37,500=(N1)
Partnership
net income $120,000-$22,500=(N2)

(N1) $172,500 + (N2) $97,500= N3

Answer: $270,000