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10 September, 05:47

A company has a beginning owner's capital of $100,000. It has net loss for the current year of $50,000 and paid $10,000 in dividends to shareholders. What is the ending owner's capital for the company?

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  1. 10 September, 08:57
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    The ending owner's capital for the company is $40,000

    Explanation:

    For computing the ending owner capital, the following equation should be used which is shown below:

    Ending owner capital = Beginning owner capital - net loss - dividend paid to shareholders

    = $100,000 - - $50,000 - $10,000

    = $40,000

    The net loss and dividend decrease the owner equity which ultimately decreases the capital. So, we deduct these amounts.

    Hence, the ending owner's capital for the company is $40,000
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Home » Business » A company has a beginning owner's capital of $100,000. It has net loss for the current year of $50,000 and paid $10,000 in dividends to shareholders. What is the ending owner's capital for the company?
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