Mirah Company compiled the following financial information as of December 31 2016: Revenues $ 340 , 000 Owner’s Capital (1/1/16) 140 , 000 Equipment 80 , 000 Expenses 240 , 000 Cash 90 , 000 Owner’s Drawings 20 , 000 Supplies 20 , 000 Accounts payable 40 , 000 Accounts receivable 70 , 000 \begin{array} { l r } ext { Revenues } & \$ 340,000 \ ext { Owner ' s Capital (1/1/16) } & 140,000 \ ext { Equipment } & 80,000 \ ext { Expenses } & 240,000 \ ext { Cash } & 90,000 \ ext { Owner ' s Drawings } & 20,000 \ ext { Supplies } & 20,000 \ ext { Accounts payable } & 40,000 \ ext { Accounts receivable } & 70,000\end{array} Revenues Owner’s Capital (1/1/16) Equipment Expenses Cash Owner’s Drawings Supplies Accounts payable Accounts receivable $340 , 000 140 , 000 80 , 000 240 , 000 90 , 000 20 , 000 20 , 000 40 , 000 70 , 000 Mirah's owner's equity on December 31 2016 isA) $100000.B) $140000.C) $220000.D) $260000.

Question

Mirah Company compiled the following financial information as of December 31 2016:    Revenues  $ 340 , 000  Owner’s Capital (1/1/16)   140 , 000  Equipment  80 , 000  Expenses  240 , 000  Cash  90 , 000  Owner’s Drawings  20 , 000  Supplies  20 , 000  Accounts payable  40 , 000  Accounts receivable  70 , 000 \begin{array} { l r } 	ext { Revenues }  &  \$ 340,000 \	ext { Owner ' s Capital (1/1/16)  }  &  140,000 \	ext { Equipment }  &  80,000 \	ext { Expenses }  &  240,000 \	ext { Cash }  &  90,000 \	ext { Owner ' s Drawings }  &  20,000 \	ext { Supplies }  &  20,000 \	ext { Accounts payable }  &  40,000 \	ext { Accounts receivable }  &  70,000\end{array}  Revenues   Owner’s Capital (1/1/16)    Equipment   Expenses   Cash   Owner’s Drawings   Supplies   Accounts payable   Accounts receivable  ​ $340 , 000 140 , 000 80 , 000 240 , 000 90 , 000 20 , 000 20 , 000 40 , 000 70 , 000 ​   Mirah's owner's equity on December 31 2016 isA)  $100000.B)  $140000.C)  $220000.D)  $260000.

Moses Glitch · Accepted Answer

Final Answer : C, Explanation :  Owner's equity on December 31, 2016, can be calculated by starting with the Owner's Capital at the beginning of the year, adding the net income (Revenues - Expenses), and subtracting the Owner's Drawings. This gives: $140,000 + ($340,000 - $240,000) - $20,000 = $220,000.

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