Rogers Insurance Agency started the year with a beginning capital balance of $ 25 comma 000. During the year, Rogers Insurance Agency earned $ 41 comma 000 of Service Revenue and incurred $ 26 comma 000 of various expenses. Rogers withdrew $ 11 comma 000 from the business. After the closing entries are recorded and posted, what will be the balance of Rogers , Capital? Post the beginning balance and closing entry amounts to the Capital account. Use a "Bal." posting reference to show the beginning and ending balance of the Capital account. Use a "Clos." posting reference to show the amounts that are posted while closing the books. The revenue and expense amounts should be combined into one closing entry for net income (like you are closing the Income Summary account).

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Business

Sunny

11 April, 17:45

Rogers Insurance Agency started the year with a beginning capital balance of $ 25 comma 000. During the year, Rogers Insurance Agency earned $ 41 comma 000 of Service Revenue and incurred $ 26 comma 000 of various expenses. Rogers withdrew $ 11 comma 000 from the business. After the closing entries are recorded and posted, what will be the balance of Rogers , Capital? Post the beginning balance and closing entry amounts to the Capital account. Use a "Bal." posting reference to show the beginning and ending balance of the Capital account. Use a "Clos." posting reference to show the amounts that are posted while closing the books. The revenue and expense amounts should be combined into one closing entry for net income (like you are closing the Income Summary account).

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Sarai Prince · Answer 1

Rogers, Capital account at year-end: 29,000

Explanation:

Income for the year:

revenues 41,000

expenses (26,000)

income 15,000

withdrawals: 11,000

From the beginning balance the income for the year will increase Rogers capital while the withdrawals decrease it.

beginning capital: 25,000

income for the year 15,000

withdrawal (11,000)

ending capital 29,000