Bob Jones Is a Sole Proprietor Who Began His Business

question 58

Multiple Choice

Bob Jones is a sole proprietor who began his business in 2019 with $20,000 cash.During the year 2019,he earned revenues of $180,000,incurred expenses of $75,000,and withdrew $120,000.Which of the following is true for the sole proprietorship?

• A)The net income is $120,000.
• B)The drawing account will be closed with a credit of $100,000.
• C)The owner's equity at the end of 2019 is $125,000.
• D)The capital account balance at the end of year 2019 is $5,000.