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3 January, 14:36

Hollywood Talent Services is a sole proprietorship operated by Phil Morris. The net income of Hollywood Talent Services is $23,000 for the year. The beginning and ending Morris, Capital account was $33,000 and $50,000, respectively. During the year, there were no new capital contributions. Calculate the amount of the owner's withdrawals for the year. Selected Answer: $6,000 Correct Answer: $6,000

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  1. 3 January, 15:36
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    Answer:$6000

    Explanation:

    Assets = Capital+Liabilities

    Capital can be broken into Closing Capital=Opening capital + profits-drawings+additional capital

    Mathematically Drawings = Opening capital+Profits+Addittional Capital-Closing Capital

    Drawings=$33000+$23000+0 (additional capital) - $50000

    =$6000
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