Question 1

(10 marks)

May Day operated a proprietorship, Days Gone Bye. On January 01, 2018, the opening capital balance was $ 55,000. Days Gone Bye, in 2018, earned $ 70,000 revenue and incurred $ 110,000 expenses. May Day withdrew $ 5,000 from her personal bank account.

Required:

What was Days Gone Byes capital balance at December 31, 2018 after the closing journal entries were recorded and posted?