Final answer:
After the closing entries, the balance in the Jay Travis, Capital account will be $130,000. This is calculated by adding the net income of $65,000 to the beginning capital balance of $80,000, then subtracting withdrawals of $15,000.
Step-by-step explanation:
To determine the new balance in the Jay Travis, Capital account after the closing entries, we need to calculate the net income and adjust the capital for withdrawals. We start by finding the net income, which is the difference between total revenues and total expenses. In this case, net income is calculated as $125,000 in total revenues minus $60,000 in total expenses, resulting in a net income of $65,000.
Next, we adjust the capital account for the owner's withdrawals. We subtract Jay Travis's withdrawals of $15,000 from the net income. The adjusted net income after withdrawals is $50,000 ($65,000 net income - $15,000 withdrawals).
Finally, we add the adjusted net income to the beginning balance of Jay Travis, Capital account. The beginning balance is $80,000, so the new balance in the Jay Travis, Capital account after the closing entries would be $130,000 ($80,000 beginning balance + $50,000 adjusted net income).