Question

Alicia Keyes Company began the year with owner's equity of $280,000. During the year, the company recorded revenues of $375,000, expenses of $265,000, and had owner drawings of $30,000. What was Alicia Keyes' owner's equity at the end of the year?

Answer 1

Owner's equity = starting equity + revenues - expenses - withdrawals 

$280,000 + $375,000 - $265,000 - $30,000

Owner's equity is $360,000.