The Grass Doctor

On January 1 of the current year, Bob's Lawn Care Service reported owner's capital totaling $122,500. During t?

On January 1 of the current year, Bob's Lawn Care Service reported owner's capital totaling $122,500. During the current year, total revenues were $96,000 while total expenses were $85,500. Also, during the current year Bob withdrew $20,000 from the company. No other changes in equity occurred during the year. If, on December 31 of the current year, total assets are $196,000, the change in owner's capital during the year was?

Public Comments

1. Answer: Revenue $96000 Less: Expenses $85500 Net income $10500 Less: Withdrawal $20000 Net decrease in equity $9500 Hence, equity at the end of the year will be $113000 ($122500 - $9500).