At the End of Its First Year of Operations,Shapiro's Consulting

question 16

Multiple Choice

At the end of its first year of operations,Shapiro's Consulting Services reported net income of $25,000.They also had account balances of: Cash,$18,000;Office Supplies,$2,000 and Accounts Receivable $10,000.The owner's total investment for this first year was $5,000.Calculate the ending balance to be reported on the Statement of Owner's Equity in the Owner's Capital account.

• A) $30,000
• B) $25,000
• C) $20,000
• D) $5,000

---

Definitions:

Bonds Payable

A liability account that represents the amounts owed by an entity to bondholders that must be repaid at a future date.

Governmental Fund Financial Statements

These are financial statements that report on the fiscal condition and the results of operations for governmental funds of a state, municipality, or similar entity.

Restricted

Designated or limited to specific purposes, unable to be freely used or accessed.