I'm in a basic accounting class and I'm stuck on what is probably a
relatively easy question. I'm not necessarily looking for an answer,
but just some guidance on whether I'm getting things right. We're
asked to solve for "X" in both cases for an imaginary not-for-profit
company:
December 31, 2001
Assets: X
Liabilities: $55,000
Equity: $45,000
This one is easy, unless my algebra is extremely rusty, X=$100,000
During 2001
Total Revenues: X
Total Expenses: $330,000
This one threw me because our text doesn't spell it out in detail.
Wouldn't X in this case be $430,000, since revenues-expenses = net
income, and net income would go in our assets column at the end of the
year?
I may be way off base, but I'm not sure. Btw, this is an online
class, so I've sent my instructor the same message, but it could be
awhile before I hear from him.
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