Barsuk Company began the year with stockholders' equity of $108,000.During the year, Barsuk issued shares of stock for $147,000, recorded expenses of $420,000, and paid dividends of $28,000.If Barsuk's ending stockholders' equity was $290,000, what was the company's revenue for the year?

Question

Quizplus · Accepted Answer

The change in stockholders' equity is calculated as follows: Ending Equity = Beginning Equity + Issued Stock + Revenue - Expenses - Dividends. Rearranging to solve for Revenue gives: Revenue = Ending Equity - Beginning Equity - Issued Stock + Expenses + Dividends = $290,000 - $108,000 - $147,000 + $420,000 + $28,000 = $483,000.

Barsuk Company Began the Year with Stockholders' Equity of $108,000