Vista camera services started the year with total assets of $ 130 comma 000 and total liabilities of $ 60 comma 000. the revenues and the expenses for the year amounted to $ 100 comma 000 and $ 60 comma 000 , respectively. during the year, the owner did not make any additional contributions, but made withdrawals of $ 40 comma 000. what is the amount of owner's equity at the end of the year?

Question

Jamir Bradshaw

Business

6 May, 04:38

Vista camera services started the year with total assets of $ 130 comma 000 and total liabilities of $ 60 comma 000. the revenues and the expenses for the year amounted to $ 100 comma 000 and $ 60 comma 000 , respectively. during the year, the owner did not make any additional contributions, but made withdrawals of $ 40 comma 000. what is the amount of owner's equity at the end of the year?

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Answers (1)

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Cade Ali · Answer 1

Owners Equity at the beginning of the year = Total Assets-Total Liabilitites

=130000-60000

=$70000

Ending Balance of Owners Equity

Beginning Balance of Owners Equity ... 70000

Add Revenue 100000

Less Expenses ... 60000

Less Drawings ... 40000

Ending Balance ... 70000