Final answer:
The ending equity for Doc's Ribhouse is calculated by adding the net income of $23,000 to the beginning equity of $73,000, which results in an ending equity of $96,000.
Step-by-step explanation:
To calculate the ending equity for Doc's Ribhouse, you begin with the beginning equity and add the net income for the period. Since there are no other transactions affecting equity, this is a straightforward calculation:
- Beginning equity: $73,000
- Net income: $23,000
- Ending equity: Beginning equity + Net income
Ending equity = $73,000 + $23,000 = $96,000
Therefore, Doc's Ribhouse has an ending equity of $96,000 assuming no other changes to equity have occurred. . Ending equity represents the residual interest in the assets of the business after deducting liabilities.