Joseph Forbes is the owner of his own business. On December 31, Forbes’ assets, liabilities, revenues and expenses were:
Insurance Expenses $3,000_______Accounts Payable $4,000
Miscellaneous Expenses 900______Accounts Receivable 5,000
Rent Expenses 2,500____________Cash 14,000
Salaries Expense 19,000_________Equipment 11,000
Supplies Expense 1,200__________Notes Payable 4,600
Services Performed 45,000________Supplies on hand 700
On December 31, if net income equals $15,000 and the ending owner’s equity is $20,000,
and Forbes invested an additional $2,600 in his business, while withdrawing $6,000
during the year, the beginning owner’s equity for this year was:
------------
The answer should be 8400, but my one differ from it. So that I understand I've made a mistake somewhere. don't want to show my erroneous computation.
Could you explain me how to calculate beginning owner's equity correctly?
Help me, please!
Insurance Expenses $3,000_______Accounts Payable $4,000
Miscellaneous Expenses 900______Accounts Receivable 5,000
Rent Expenses 2,500____________Cash 14,000
Salaries Expense 19,000_________Equipment 11,000
Supplies Expense 1,200__________Notes Payable 4,600
Services Performed 45,000________Supplies on hand 700
On December 31, if net income equals $15,000 and the ending owner’s equity is $20,000,
and Forbes invested an additional $2,600 in his business, while withdrawing $6,000
during the year, the beginning owner’s equity for this year was:
------------
The answer should be 8400, but my one differ from it. So that I understand I've made a mistake somewhere. don't want to show my erroneous computation.
Could you explain me how to calculate beginning owner's equity correctly?
Help me, please!
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