Compute the missing amount for company. You will need to prepare a statement of owners's equity. Did company earn a net income or suffer a net loss for the year? Compute the amount.

Beginning:
Assets 50,000
Liabilities 20,000

Ending:
Assets 70,000
Liabilities 35,000

Owner's Equity:
Withdrawals by owner 40,000

IncomeStatement
Revenues 230,000
Expenses??

How do I compute the expenses? I am very lost at this point. Thanks for your help

You have to use the ff accounting equations:

Assets=Liabilities + owner's equity.

Owner's Equity, end = Beg balance + net income - withdrawals

Net Income = Sales - expenses

blm004, what does your ATTEMPT at solving this look like?

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