$7$

$3$ points

Mark Hasslett started a proprietorship on January $1,$ Year $1$ with a $$1,000$ cash contribution to the business. During the first year of operations, the company generated $$5,000$ of cash revenue and incurred $$2,000$ of cash expenses. Also, Mark withdrew $$500$ from the business. At the end of Year $1,$ the balance in the Mark Hasslett, Capital account was

$$1,000.$

$$3,500.$

$$3,000.$

$$4,000.$