Owner's equity at the start of the period is $35,000; net income for the period is $30,000; the total investments by the owner is $15,000; and total withdrawals by the owner is $5,000.The owner's equity at the end of the period is
A) $80,000.
B) $75,000.
C) $85,000.
D) $40,000.

Question

Quizplus · Accepted Answer

To calculate the owner's equity at the end of the period, start with the beginning owner's equity ($35,000), add net income for the period ($30,000), add investments by the owner ($15,000), and subtract withdrawals by the owner ($5,000). This results in $35,000 + $30,000 + $15,000 - $5,000 = $75,000.

Owner's Equity at the Start of the Period Is $35,000;