Parrish 1-3 #4 I asked this question early and below is the answer I was given. The person did not explain how or why the equation when from Closing RE=Opening RE +Net Income/loss+Dividends paid 8000=12000+Net Income/Loss-0 to Net Income/Loss=8000-12000+0 (Why did the the 1/1 RE 12000 turn to negative?) Here is the information needed to find the missing Expense Revenue $6000 Dividends declared $0 Expenses $Unkown 1/1 RE $12000 12/31 RE $8000 If you could explain how to find the expense amount in a more clear manner I would appreciate it.
Parrish 1-3 #4 I asked this question early and below is the answer I was given. The person did not explain how or why the equation when from Closing RE=Opening RE +Net Income/loss+Dividends paid 8000=12000+Net Income/Loss-0 to Net Income/Loss=8000-12000+0 (Why did the the 1/1 RE 12000 turn to negative?) Here is the information needed to find the missing Expense Revenue $6000 Dividends declared $0 Expenses $Unkown 1/1 RE $12000 12/31 RE $8000 If you could explain how to find the expense amount in a more clear manner I would appreciate it.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Parrish 1-3 #4
I asked this question early and below is the answer I was given. The person did not explain how or why the equation when from
Closing RE=Opening RE +Net Income/loss+Dividends paid
8000=12000+Net Income/Loss-0
to Net Income/Loss=8000-12000+0 (Why did the the 1/1 RE 12000 turn to negative?)
Here is the information needed to find the missing Expense
Revenue $6000
Dividends declared $0
Expenses $Unkown
1/1 RE $12000
12/31 RE $8000
If you could explain how to find the expense amount in a more clear manner I would appreciate it.
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