Question

The beginning capital balance shown on a statement of owner's equity is $44,000. Net loss for the period is $13,500 and the owner withdrew $17,500 cash from the business and made no additional investments during the period. The owner's capital balance at the end of the period is

Answer 1

See below

Step-by-step explanation:

Given that;

Opening capital = $44,000

Net loss = ($13,500)

Drawings = $17,500

Then,

Owner's capital balance is computed as ;

Capital at the end of the year = Opening capital + Net income(Net loss) - Drawings

Capital at the end of the year = $44,000 - $13,500 - $17,500

Capital at the end of the year = $13,000