Question

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?

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