So I'm confused as to how to go about calculating the missing amounts in the owners equity here:
http://i889.photobucket.com/albums/a...38790194_n.jpg
This is what I have so far
http://i889.photobucket.com/albums/a...coutning-1.png
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So I'm confused as to how to go about calculating the missing amounts in the owners equity here:
http://i889.photobucket.com/albums/a...38790194_n.jpg
This is what I have so far
http://i889.photobucket.com/albums/a...coutning-1.png
A, C, and E are correct.
The formula for B, D, and F that you need is the formula for changes in equity, which is:
Ending Equity = Beginning Equity + Investments + Revenues - Expenses - Drawings
B. This can be rewritten as:
Investments = Ending Equity - Beginning Equity - Revenues + Expenses + Drawings
D. This can be rewritten as:
Drawings = Ending Equity - Beginning Equity - Investments - Revenues + Expenses
F. This can be rewritten as:
Revenues = Ending Equity - Beginning Equity - Investments + Expenses + Drawings
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