Vista started the year with $130, 000 of assets and $45, 000 of liabilities. During the year, they had $110, 000 of revenues and $80, 000 of expenses. The owner made no additional contributions but took $55, 000 of withdrawals. How much was owners equity at the end of the year?

BUSINESS ENVIRONMENT

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Question [CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]

Vista started the year with $130, 000 of assets and $45, 000 of liabilities. During the year, they had $110, 000 of revenues and $80, 000 of expenses. The owner made no additional contributions but took $55, 000 of withdrawals. How much was owner’s equity at the end of the year?

A	$80, 000
B	$110, 000
C	$55, 000
D	$60, 000

Explanation:

Detailed explanation-1: -Dynamic Production Services started the year with total assets of $120, 000 and total liabilities of $55, 000. The revenues and the expenses for the year amounted to $100, 000 and $80, 000, respectively. During the year, the company did not issue any common stock, but it distributed dividends of $50, 000.

Detailed explanation-2: -Precision camera services started the year with total assets of $120, 000 and total liabilities of $40, 000. The company is a sole proprietorship. The revenues and the expenses for the year amounted to $140, 000 and $50, 000, respectively.

Detailed explanation-3: -The main accounting equation is: Assets = Liabilities + Equity. Together, they make up a company’s balance sheet.

Detailed explanation-4: -The balance sheet is based on the fundamental equation: Assets = Liabilities + Owner’s Equity.

There is 1 question to complete.

BACHELOR OF BUSINESS ADMINISTRATION

BUSINESS ADMINISTRATION

BUSINESS ENVIRONMENT