Se the following account balances from the adjusted trial balance of Gees Catering:

Account Debit Balance Credit Balance

Cash 10,000

Accounts Payable 2,000

R. Gees, Drawing 1,000

R. Gees, Capital 18,000

Fees Revenue 10,000

Salary Expense 7,000

Rent Expense 6,000

Supplies Expense 6,000

What is the amount that Gees Consulting would report as the ending balance in the R. Gees, Capital account at the end of the year?

The amount that Gees Consulting would report as the ending balance in the R. Gees, Capital account at the end of the year is $8,000

Explanation:

For computing the ending balance of capital account, first, we have to compute the net income or loss which is shown below:

Net income/loss = Fees revenue - salary expense - rent expense - supplies expense

= $10,000 - $7,000 - $6,000 - $6,000

= ($19,000)

Now the ending balance would be

= Opening capital - net loss - drawings

= $18,000 - $9,000 - $1,000

= $8,000