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During its first year of operations, the owner of Lupo Company invested $15,000 in the business and withdrew $2,000. The company earned $35,000 of revenues and incurred $23,000 of expenses. At the end of the year, the company's equity totaled:

Respuesta :

jepessoa

Answer:

$25,000

Explanation:

Lupo Company's equity = owner's equity + retained earnings

  • owner's equity = $15,000 (initial investment) - $2,000 (withdrawal) = $13,000
  • retained earnings = net income = total revenue - total costs = $35,000 - $23,000 = $12,000

Lupo Company's equity = $13,000 + $12,000 = $25,000

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