Question

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).

Answer 1

Answer:

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