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To find the new capital balance, we need to consider the beginning capital, net income, and withdrawals by the owner.
The formula to calculate the new capital balance is as follows:
New Capital Balance = Beginning Capital + Net Income - Owner's Withdrawals
Given:
Beginning Capital = $4,000
Net Income = $14,000
Owner's Withdrawals = $3,000
Now let's substitute the given values into the formula:
New Capital Balance = $4,000 + $14,000 - $3,000
Calculating:
New Capital Balance = $18,000
Therefore, the new capital balance reported will be $18,000.