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At the end of its first month of operations, Michael's Consulting Services reported net income of $27,400. They also had account balances of: Cash, $19,600; Office Supplies, $2,400 and Accounts Receivable $10,800. The owner's total investment for this first month was $5,400. There were no owner withdrawals in the first month Calculate the ending balance in the Owner's Capital account to be reported on the Statement of Owner's Equity.

Answer :

Answer:

$32,800

Explanation:

The computation of the ending balance in the owner capital account is shown below:

= Net income reported + total investment for the first month

= $27,400 + $5,400

= $32,800

We simply added the net income and the total investment reported during the month so that the ending balance  in the owner capital account could arrive

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