As of January 1, Seth Fite, Capital, had a credit balance of $10,500. During the year, withdrawals

Question:

As of January 1, Seth Fite, Capital, had a credit balance of $10,500. During the year, withdrawals totaled $4,000 and the business incurred a net loss of $8,000.
a. Calculate the balance of Seth Fite, Capital, as of the end of the year.
b. Assuming that there have been no recording errors, will the prepared at December 31 balance? Explain.

Balance Sheet
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial...