On May 1, 2013, Padilla Inc

Accounting Dec 16, 2020

On May 1, 2013, Padilla Inc. reported owner's equity of $136,000. During the month, Padilla generated revenues of $20,000 and incurred expenses of $12,000, purchased equipment worth $5,000, and withdrew cash of $2,000. What is the amount in owner's equity on May 31, 2013?

a. $136,000

b. $8,000

c. $137,000

d. $142,000

Expert Solution

The owner's equity is:

Beginning balance	$136,000
Revenues	20,000
Expenses	(12,000)
Withdrawals	(2,000)
Ending balance	$142,000

The correct option is d.

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