[Solved] At the End of Its First Month of Operations, Michael's

Question 161
Multiple Choice

At the end of its first month of operations, Michael'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 month was $5,000. There were no owner withdrawals in the first month. Calculate the ending balance in the Owner's Capital account to be reported on the Statement of Owner's Equity.

A) $20,000
B) $7,000
C) $30,000
D) $5,000
E) $25,000

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