The following information is available for the Noir Detective Agency. After closing entries are posted, what will be the balance in the G. Noir, Capital account?
$\begin{array}{lr}
\text { Net Loss } & \$ 17,600 \
\text { G. Noir, Capital } & 289,000 \
\text { G. Noir, Withdrawals } & 32,000
\end{array}$

A) $303,400.
B) $289,000.
C) $239,400.
D) $274,600.
E) $257,000.

Question

The following information is available for the Noir Detective Agency. After closing entries are posted, what will be the balance in the G. Noir, Capital account? 
$\begin{array}{lr}
\text { Net Loss } & \$ 17,600 \
\text { G. Noir, Capital } & 289,000 \
\text { G. Noir, Withdrawals } & 32,000
\end{array}$

A) $303,400.
B) $289,000.
C) $239,400.
D) $274,600.
E) $257,000.

Quizplus · Accepted Answer

The net loss of $17,600 and the withdrawals of $32,000 will both decrease the capital account. The new balance will be $289,000 - $17,600 - $32,000 = $239,400.