The following information is available for the Higgins Travel Agency. After closing entries are posted, what will be the balance in the C. Higgins, Capital account? $\begin{array}{lr}
\text { Net Income } & \$ 42,500 \
\text { C. Higgins, Capital } & 130,000\\text { C. Higgins, Withdrawals }&12,000
\end{array}$
A)$99,500.
B)$130,000.
C)$75,500.
D)$184,500.
E)$160,500.

Question

Quizplus · Accepted Answer

The balance in the C. Higgins, Capital account after closing entries is calculated as the initial capital plus net income minus withdrawals: $130,000 + $42,500 - $12,000 = $160,500.