Question

A business has beginning capital of $56000 the owner makes no contributions but does withdraw $15000. the net income for the reporting. Is $9000 what is the ending balance?A. $24,000B. $50,000C. $80,000D. $41,000

Answer 1

Okay, here we have this:

Considering the provided information, we are going to calculate the requested ending balance, so we obtain the following:

So we have the following formula:

Answer 2

The ending balance of the business is $41,00.

To find the ending balance, we need to consider the beginning capital, owner withdrawals, and net income.

Beginning capital: $56,000

Owner withdrawals: -$15,000 (negative because it is a withdrawal)

Net income: $9,000

To calculate the ending balance, we need to subtract the owner withdrawals and add the net income to the beginning capital.

Ending balance = Beginning capital - Owner withdrawals + Net income

Ending balance = $56,000 - $15,000 + $9,000

Simplifying the calculation, we have:

Ending balance = $40,000 + $9,000

Ending balance = $49,000

Therefore, the correct answer is D. $41,00