Alicia Keyes Company began the year with owner's equity of $280000. During the year the company recorded revenues of $375000 expenses of $265000 and had owner drawings of $30000. What was Alicia Keyes' owner's equity at the end of the year?

Question

Quizplus · Accepted Answer

The owner's equity at the end of the year is calculated by starting with the beginning owner's equity, adding revenues, subtracting expenses, and subtracting owner drawings. So, $280,000 (beginning equity) + $375,000 (revenues) - $265,000 (expenses) - $30,000 (drawings) = $360,000.

Alicia Keyes Company Began the Year with Owner's Equity of $280000