Question

Olivia Greer is a partner in Made for You. An analysis of Greer's capital account indicates that during the most recent year, she withdrew $26,000 from the partnership. Her share of the partnership's net loss was $19,000 and she made an additional equity contribution of $16,000. Her capital account ended the year at $156,000. What was her capital balance at the beginning of the year?

Answer 1

$185,000

Step-by-step explanation:

Computation of the given data are as follows:

Ended Capital A/c balance = $156,000

Equity additional contribution = $16,000

Net loss = $19,000

Withdrawal = $26,000

So, Beginning Capital balance = Ended Capital A/c balance - Equity additional contribution + Net loss + Withdrawal

= $156,000 - $16,000 + $19,000 + $26,000

= $185,000