Question

Аавьссс Аавьссс Аавьсс Аавьссс Аав Аавьсес 1 Normal 1 No Spac... Heading 1 Heading 2 Title Subtitle mat Painter Liberation Sans 11 À À Aa A E.E. AL BIU de X, X Aay.A. Paragraph C. $125,000 = $50,000 + $75,000 d. $125,000 = $35,000 + $90,000 Font Styles 7. Andi Enterprises began the year with stockholders' equity of $125,000. During the year, Andi issued stock for $100,000, recorded expenses of $360,000, and paid dividends of $30,000. If Andi's ending stockholders' equity was $260,000, what was the enterprise's revenue for the year? a. $400,000 b. $425,000. c. $565,000. d. $600,000. 8. The double-entry system requires that each transaction must be recorded a. in at least two different accounts. in ainurnal and in a ledner h 1371 words 1:33 F Type here to search O E

please solve problem 7 and explain step by step as to how you got the answer

Answer 1

Ans. Shareholders equity would comprise of share capital and other equity.

Closing shareholder equity= opening shareholders equity+ Transaction during the year

Transaction during the year comprise of following

- Revenue for the year(Increase shareholders equity)

- Expenses( Decrease shareholders equity)

- Issue of stock(Increase shareholders equity)

-Dividend paid(Decrease shareholders equity)

So, from above formula

260000=125000+(Revenue-360000+100000-30000)

260000= 125000+Revenue- 290000

Revenue= 425000