The following information is available for Zephyr Company before closing the accounts. After all of the closing entries are made, what will be the balance in the Zephyr, Capital account? $$\begin{array} { | l | r | }
\hline \text { Net income } & \text { \$ } 115,000 \
\hline \text { Zephyr, Capital } & 110,000 \
\hline \text { Zephyr, Withdrawals } & 39,000 \
\hline
\end{array}$$
A) $225,000.
B) $264,000.
C) $956,000.
D) $115,000.
E) $186,000.

Question

The following information is available for Zephyr Company before closing the accounts. After all of the closing entries are made, what will be the balance in the Zephyr, Capital account? $$\begin{array} { | l | r | } 
\hline \text { Net income } & \text { \$ } 115,000 \
\hline \text { Zephyr, Capital } & 110,000 \
\hline \text { Zephyr, Withdrawals } & 39,000 \
\hline
\end{array}$$
A) $225,000.
B) $264,000.
C) $956,000.
D) $115,000.
E) $186,000.

Quizplus · Accepted Answer

The balance in the Zephyr, Capital account after closing entries is calculated as the initial capital plus net income minus withdrawals: $110,000 + $115,000 - $39,000 = $186,000.

The Following Information Is Available for Zephyr Company Before Closing