Question

6. + The accounting equation for Green Company is as follows: Assets Liabilities Stockholders' Equity $95,000 = $20,000 $75,000 If Green purchases a new truck on account for $30,000, the accounting equation will change to Assets Liabilties Stockholders' Equity a. $95,000 $20,000 + $75,000 b. $95,000 = $50,000 + $45,000 c. $125,000 = $50,000 + $75,000 d. $125,000 = $35,000 + $90,000 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 e to search o 11

please solve these two questions and show work as to how you got the answer step by step

Answer 1

1. Answer is option c

125000= 50000+75000

Here asset and liabilities are increased.

2. Answer is option c

Closing shareholders equity - 260000

Less. Opening stockholders equity - 125000

Less. New issued shares - 10000

Add paid dividends - 30000

Gives the net profit of the year - 65000

Total revenue is the net profit plus expences during the year

= 65000+360000=425000