Question

question 1 (10 points)

a summary of selected ledger accounts appear below for s. ball for the current calendar year.
answer questions 1 through 4 based on this information.

s. ball, capital
12/31 6,500 | 1/1 27,000
| 12/31 4,250

s. ball, withdrawals
3/31 2,000 | 12/31 6,000
10/31 3,000 |
12/22 1,000 |

income summary
12/31 12,750 | 12/31 17,000
12/31 4,250 |

1. what was the total amount of withdrawals for the year?

( ) $6500
( ) $1000
( ) $3000
( ) $6000

Explanation:

Identify the relevant T-account

To find the total withdrawals, locate the "S. Ball, Withdrawals" T-account.

Analyze the debit entries

The debit side (left) shows individual withdrawals made during the year:

• 3/31: \$2,000
• 10/31: \$3,000
• 12/22: \$1,000

Calculate the sum of withdrawals

Sum the debit entries to find the total amount withdrawn:

$$ \text{Total Withdrawals} = \$2,000 + \$3,000 + \$1,000 = \$6,000 $$

Verify with the closing entry

The credit side (right) shows a closing entry on 12/31 of \$6,000.
This entry transfers the total balance of the withdrawals account to the capital account, confirming the total is \$6,000.

Answer:

• (A) $6500
• (B) $1000
• (C) $3000
• (D) $6000 (Correct answer)