Question

policies
current attempt in progress
crane company began the year with owner’s equity of $289000. during the year, the company recorded revenues of $382000, expenses of $257000, and had owner drawings of $30800. what was crane’ owner’s equity at the end of the year?
○ $444800.
○ $414000.
○ $383200.
○ $289000.

Explanation:

Step1: Calculate net income

Net income = Revenues - Expenses = $382000 - $257000 = $125000

Step2: Calculate ending owner's equity

Ending owner's equity = Beginning owner's equity + Net income - Owner drawings = $289000 + $125000 - $30800 = $383200

Answer:

$383200