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-   -   Accounting test question (https://www.askmehelpdesk.com/showthread.php?t=765256)

  • Sep 1, 2013, 12:26 PM
    honeybee1020
    Accounting test question
    If you have $465,000.00 beginning of year in retained earnings, during the year $630,000.00 in common stocks were issued, $1,800,00.00 in expenses, $120,000.00 in paid dividends, if ending retained revenue/ earnings of $495,000.00 what is the revenue for the year
  • Sep 1, 2013, 12:52 PM
    pready
    Here are the formulas you need:

    Ending Equity = Beginning Equity + Common Stock issued + Net Income - Cash Dividends = Ending Equity

    Rewritten as:

    Net Income = Ending Equity - Beginning Equity - Common Stock Issued + Cash Dividends

    Net Income = Revenues - Expenses

    Rewritten as:
    Revenues = Net Income + Expenses

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