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-   -   Accounting Help (https://www.askmehelpdesk.com/showthread.php?t=767167)

  • Sep 14, 2013, 04:27 PM
    Irisu
    Accounting Help
    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
  • Sep 15, 2013, 02:02 PM
    pready
    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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