The net income of Thomas Company was $73,000 for this year.The beginning balance of Thomas,Capital was $32,000 and the ending balance was $71,000.There were no new capital contributions during the year.What was the amount of withdrawals during the year?
A) $71,000
B) $34,000
C) $144,000
D) $32,000

Question

Quizplus · Accepted Answer

The increase in Thomas, Capital during the year is calculated as follows:
Beginning Balance + Net Income - Withdrawals = Ending Balance
$32,000 + $73,000 - Withdrawals = $71,000
Solving for Withdrawals, we get:
Withdrawals = $34,000
Therefore, the answer is B.

The Net Income of Thomas Company Was $73,000 for This