Question

Barsuk Company began the year with stockholders' equity of $108,000. During the year, Barsuk issued 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?

Answer 1

Answer:

The company’s revenue for the year is $483,000

Explanation:

The computation of the revenue is shown below:

The ending balance of the stockholders' equity  = Beginning balance of stockholders' equity + issued shares - expenses + income - dividend paid

$290,000 = $108,000 + $147,000 - $420,000 + income - $28,000

$290,000 = - $193,000 + income

So, the income would equal to

=  $290,000 + $193,000

= $483,000