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At the beginning of the year, sigma company's balance sheet reported total assets of $213,000 and total liabilities of $82,000. during the year, the company reported total revenues of $248,000 and expenses of $192,000. also, owner withdrawals during the year totaled $52,000. assuming no other changes to owner's capital, the balance in the owner's capital account at the end of the year would be:

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Final answer:

The balance in Sigma Company's owner's capital account at the end of the year is $135,000. This is calculated by adding the beginning owner's equity of $131,000 to the net income of $56,000 and subtracting the owner withdrawals of $52,000.

Step-by-step explanation:

To calculate the balance in the owner's capital account at the end of the year for Sigma Company, we need to consider the following financial information:

  • Beginning total assets: $213,000
  • Beginning total liabilities: $82,000
  • Total revenues: $248,000
  • Total expenses: $192,000
  • Owner withdrawals: $52,000

The owner's equity at the beginning of the year is the difference between total assets and total liabilities, which is $213,000 - $82,000 = $131,000. During the year, the company's net income is calculated by subtracting total expenses from total revenues: $248,000 - $192,000 = $56,000. To find the owner's capital at the end of the year, we combine the beginning owner's equity with net income and then subtract owner withdrawals.

The updated owner's equity thus is:

Beginning owner's equity: $131,000

Net income for the year: $56,000

Subtract owner withdrawals: $52,000

Ending owner's equity: $135,000

Therefore, the balance in the owner's capital account at the end of the year would be $135,000, assuming no other changes to owner's capital.

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