At the End of Its First Month of Operations, Michael's

question 179

Multiple Choice

At the end of its first month of operations, Michael'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 month was $5,000. 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.

• A) $20,000
• B) $7,000
• C) $30,000
• D) $5,000
• E) $25,000

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Definitions:

Normal Distribution

Normal Distribution is a probability distribution that is symmetric about the mean, showing that data near the mean are more frequent in occurrence.

Skewed Right

A distribution that has a tail on the right side, indicating that the majority of data points are concentrated on the left.

Homeowners

Individuals or entities that own and typically reside in a residential property.

Probability Estimate

A numerical measure indicating the likelihood of a specific event happening.