If the beginning balance of equity is $82,000, the ending balance is $37,000, and the loss for the period is $33,000, how much did the owner withdraw during the period for personal use?$12,000$49,000$45,000$78,000
Question
If the beginning balance of equity is 37,000, and the loss for the period is 12,00045,000$78,000
Solution 1
To calculate how much the owner withdrew during the period for personal use, you need to consider the beginning balance of equity, the ending balance, and the loss for the period.
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Start with the beginning balance of equity, which is $82,000.
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Subtract the loss for the period from the beginning balance of equity. The loss for the period is 82,000 - 49,000. This is what the equity balance would be at the end of the period if no withdrawals were made.
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Now, subtract the actual ending balance of equity from the result in step 2 to find out how much was withdrawn. The ending balance of equity is 49,000 - 12,000.
So, the owner withdrew $12,000 during the period for personal use.
Solution 2
To find out how much the owner withdrew during the period for personal use, you need to follow these steps:
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Start with the beginning balance of equity. In this case, it's $82,000.
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Subtract the loss for the period from the beginning balance of equity. The loss is 82,000 - 49,000. This is what the equity balance would be at the end of the period if no withdrawals were made.
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Now, compare this to the actual ending balance of equity, which is 49,000 - 12,000.
So, the owner withdrew $12,000 during the period for personal use.
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