Determine the Ending Owner's Equity of a Business Having a Beginning

question 93

Short Answer

Determine the ending owner's equity of a business having a beginning owner's equity of $4,200,withdrawals of $1,500,and after closing the revenues and expenses Income Summary has a credit balance of $4,750.
$ ________

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Definitions:

Dividends

Payments made by a corporation to its shareholder members, usually as a distribution of profits.

Income Statement

A financial statement that shows a company's revenues, expenses, and profits or losses over a specific period of time.

Trial Balance

A report that lists the balances of all general ledger accounts at a certain date, used to verify that the total of all debit balances equals the total of all credit balances.

Journalizing Transactions

The process of recording financial transactions in a company's accounting records, or journals, in chronological order.