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21 April, 14:43

The following information is available from the adjusted trial balance of the Harris Vacation Rental Agency. After closing entries are posted, what will be the balance in the Sue Harris, Capital account?

Total revenues $ 100,000

Total expenses 48,000

Sue Harris, Capital 64,000

Sue Harris, Withdrawals 12,000

a. $116,000.

b. $52,000.

c. $48,000.

d. $64,000.

e. $104,000.

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  1. 21 April, 15:33
    0
    e. $104,000.

    Explanation:

    The computation of the ending capital balance is shown below:

    As we know that

    Ending capital balance = Opening capital balance + net income - withdrawn amount

    where,

    Opening capital balance = $64,000

    Net income is

    = Revenues - expenses

    = $100,000 - $48,000

    = $52,000

    And, the withdrawn amount is $12,000

    So, the ending capital balance i s

    = $64,000 + $52,000 - $12,000

    = $104,000
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