On January 1 of the Current Year, Jimmy's Sandwich Company

question 56

Multiple Choice

On January 1 of the current year, Jimmy's Sandwich Company reported owner's capital totaling $122,500. During the current year, total revenues were $96,000 while total expenses were $85,500. Also, during the current year Jimmy withdrew $20,000 from the company. No other changes in equity occurred during the year. If, on December 31 of the current year, total assets are $196,000, the change in owner's capital during the year was:

• A) A decrease of $9,500.
• B) An increase of $73,500.
• C) An increase of $9,500.
• D) A decrease of $30,500.
• E) An increase of $30,500.

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