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-   -   Accounting help needed (https://www.askmehelpdesk.com/showthread.php?t=766113)

  • Sep 7, 2013, 10:40 AM
    stmj001
    Accounting help needed
    Solving for (a) I know Assets= liabilities-Stockholders Equity but figure expenses and dividends play into this somehow. I am a beginning student and need help not only finding the right answer but also I really need to understand how to figure it.

    Beginning
    Assets $28,000
    Liabilities 18,600
    Ending
    Assets 30,100
    Liabilities 17,300
    During the year
    Sales Revenue (a)
    Expenses 8,500
    Dividends 3,000
  • Sep 7, 2013, 02:06 PM
    pready
    First thing you have to do is get beginning equity, which is Assets - Liabilities = Equity

    Now you have to know the formula for finding ending equity, which is:
    Ending Equity = Beginning Equity + Net Income - Dividends

    Which can be rewritten to find Net Income:
    Net Income = Ending Equity - Beginning Equity + Dividends

    Now you can solve for Revenues:
    Net Income = Revenues - Expenses

    Rewritten as:
    Revenues = Net Income + Expenses

    Now you have to solve for Net
  • Sep 7, 2013, 04:09 PM
    stmj001
    Thanks I'll figure it and do the problems. I really appreciate the help.

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