Use the following information for questions 127-129.
Carla's Computer Repair Shop started the year with total assets of $270,000 and total liabilities of $180,000. During the year, the business recorded $450,000 in computer repair revenues, $255,000 in expenses, and Carla withdrew $45,000.
-Carla's Capital balance at the end of the year was
A) $240,000.
B) $225,000.
C) $285,000.
D) $195,000.

Question

Quizplus · Accepted Answer

Carla's Capital balance at the end of the year is calculated as follows:Beginning Capital + Revenues - Expenses - Withdrawals = Ending Capital$270,000 + $450,000 - $255,000 - $45,000 = $240,000

Use the Following Information for Questions 127-129