York Casting Services started the year with total assets of $120,000 and total liabilities of $60,000.The revenues and the expenses for the year amounted to $150,000 and $50,000,respectively.During the year,the owner did not make any additional contributions,but had withdrawals of $75,000.Calculate the amount of increase or decrease in owner's equity for the year.
A)a $25,000 increase
B)a $85,000 increase
C)a $60,000 decrease
D)a $75,000 increase

Question

Quizplus · Accepted Answer

A)Equity (at the beginning of the year)= $120,000 - $60,000 = $60,000
Equity (at the end of the year)= Equity (beginning balance)- Withdrawals + Revenues - Expenses 11ea8a42_4eea_645e_8b44_cd5ebb36930e_TB5024_00 Change in owner's equity for the 11ea8a42_4eea_645f_8b44_713f68644731_TB5024_00

York Casting Services Started the Year with Total Assets of $120,000