At the beginning of the year, Sigma Company's balance sheet reported Total Assets of 195,000 and Total Liabilities of 75,000 During the year, the company reported total revenues of 226,000 and expenses of 175,000. Also, owner withdrawals during the year totaled 48,000. Assuming no other changes to owner's capital, the balance in the owner's capital account at the end of the year would be: Multiple Choice 123,000. 78,000. 171,000. 120,000. 174,000.

To determine the balance in the owner's capital account at the end of the year, we need to follow these steps:<br /><br />1. **Calculate the Owner's Equity at the Beginning of the Year:**<br /><br /> \[<br /> \text{Owner's Equity} = \text{Total Assets} - \text{Total Liabilities}<br /> \]<br /><br /> \[<br /> \text{Owner's Equity} = \$195,000 - \$75,000 = \$120,000<br /> \]<br /><br />2. **Calculate the Net Income for the Year:**<br /><br /> \[<br /> \text{Net Income} = \text{Total Revenues} - \text{Expenses}<br /> \]<br /><br /> \[<br /> \text{Net Income} = \$226,000 - \$175,000 = \$51,000<br /> \]<br /><br />3. **Adjust for Owner Withdrawals:**<br /><br /> The owner's capital is affected by net income and withdrawals. Therefore, the change in owner's equity during the year is:<br /><br /> \[<br /> \text{Change in Owner's Equity} = \text{Net Income} - \text{Withdrawals}<br /> \]<br /><br /> \[<br /> \text{Change in Owner's Equity} = \$51,000 - \$48,000 = \$3,000<br /> \]<br /><br />4. **Calculate the Owner's Capital at the End of the Year:**<br /><br /> \[<br /> \text{Ending Owner's Capital} = \text{Beginning Owner's Equity} + \text{Change in Owner's Equity}<br /> \]<br /><br /> \[<br /> \text{Ending Owner's Capital} = \$120,000 + \$3,000 = \$123,000<br /> \]<br /><br />Therefore, the balance in the owner's capital account at the end of the year would be \(\$123,000\).<br /><br />The correct answer is: \(\$123,000.\)