Question

At the end of its first month of operations, Michael's Consulting Services reported net income of $25,900. They also had account balances of: Cash, $18,600; Office Supplies, $2,150 and Accounts Receivable $10,300. The owner's total investment for this first month was $5,150. There were no owner withdrawals in the first month Calculate the ending balance in the Owner's Capital account to be reported on the Statement of Owner's Equity.

Answer 1

Answer:

the ending balance of the owner capital account is $31,050

Explanation:

The computation of the ending balance of the owner capital account is as follows:

= Net income reported + total investment made

= $25,900 + $5,150

= $31,050

Hence, the ending balance of the owner capital account is $31,050

The same is to be considered by adding the above two items