Question

Owner's equity at the start of the period is $35,000; net income for the period is $30,000; the total investments by the owner is $15,000; and total withdrawals by the owner is $5,000. The owner's equity at the end of the period is a.$75,000. b.$85,000. c.$80,000. d.$40,000.

Answer 1

The answer is A

Step-by-step explanation:

Balance b/f - $35,000

Add: Net income - $30,000

Add: Total investment - $15,000

Minus: owner's withdrawal- ($5,000)

Total-. $75,000

Therefore, the owner's equity at the end of the period is $75,000(option A)