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Problem - Capital account balance - As of January 1, Brenda Cikan, Capital, had a credit balance of $125,000. During the year, withdrawals totaled $7,000, and the business incurred a net loss of $130,000.
Required -
a. Compute the balance of Brenda Cikan, Capital, as of the end of the year.
b. Assuming that there have been no recording errors, will the balance sheet prepared at December 31 balance? Explain.
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