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    Irisu's Avatar
    Irisu Posts: 4, Reputation: 1
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    #1

    Sep 14, 2013, 04:27 PM
    Accounting Help
    So I'm confused as to how to go about calculating the missing amounts in the owners equity here:



    This is what I have so far

    pready's Avatar
    pready Posts: 3,197, Reputation: 207
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    #2

    Sep 15, 2013, 02:02 PM
    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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