Accounting Principles Chapter 3

# Accounting - WhatisthefigureforB.SnyderCapital?It'snotzerosowhatisit ThefigureforB. \$38,500. BASEformula,.

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What is the figure for B. Snyder Capital? It's not zero so what is it? The figure for B. Snyder’s Capital account is  \$38,500. You calculate the number using the  BASE formula, which I am about to explain. Then I will present the BASE formula with  your numbers to show you how to arrive as the Capital Balance. The BASE formula for Owner’s Equity (also called Retained Earnings) is as follows: Beginning Balance of Owner’s Equity (Retained Earnings) Add: Net Income, if any Add: Capital Investments Subtract: Net Loss, if any Subtract: Drawings (Dividends) Equals: Ending Balance of Owner’s Equity (Retained Earning) For your problem 6, the BASE formula looks like this: Beginning Balance of Owner’s Equity  \$51,200 Subtract: Net Loss (\$8,700) Subtract: Drawings  (\$4,000) Equals: Ending Balance of Owner’s Equity  \$38,500

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## This note was uploaded on 03/01/2012 for the course ACCOUTNING 550 taught by Professor Abner during the Spring '11 term at DeVry Houston.

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Accounting - WhatisthefigureforB.SnyderCapital?It'snotzerosowhatisit ThefigureforB. \$38,500. BASEformula,.

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