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

Question

Quizplus · Accepted Answer

The ending balance in the Owner's Capital account is calculated by adding the owner's initial investment ($5,000) to the net income ($25,000), resulting in $30,000.

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