Question

The J. Godfrey, Capital account has a credit balance of 17,000 before closing entries are made. If total revenues for the period are55,200, total expenses are 39,800, and withdrawals are9,000, what is the ending balance in the J. Godfrey, Capital account after all closing entries are made?

1) $32,400
2) $17,000
3) $15,400
4) $8,000
5) $23,400

Answer 1

The ending balance in the J. Godfrey, Capital account after all closing entries are made is $23,400.

Step-by-step explanation:

The ending balance in the J. Godfrey, Capital account after all closing entries are made can be calculated by subtracting the total expenses, withdrawals, and total revenues from the beginning balance. In this case, the beginning balance is a credit balance of $17,000.

To calculate the ending balance, we can use the following formula:

Ending balance = Beginning balance + Total Revenues - Total Expenses - Withdrawals

Plugging in the values from the question, we get:

Ending balance = $17,000 + $55,200 - $39,800 - $9,000

Simplifying the equation gives us:

Ending balance = $23,400

Therefore, the ending balance in the J. Godfrey, Capital account after all closing entries are made is $23,400.