Letty Company began the year with owner's equity of $105000. During the year Letty received additional owner investments of $147000 recorded expenses of $420000 and had owner drawings of $28000. If Letty's ending owner's equity was $290000 what was the company's revenue for the year?

Question

Quizplus · Accepted Answer

The company's revenue can be calculated using the owner's equity formula: Ending Owner's Equity = Beginning Owner's Equity + Owner Investments + Revenues - Expenses - Owner Drawings. Plugging in the given values: $290,000 = $105,000 + $147,000 + Revenues - $420,000 - $28,000. Solving for Revenues gives $486,000.

Letty Company Began the Year with Owner's Equity of $105000