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    Ending owner's equity of a business

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    2) Determine the ending owner's equity of a business having a beginning owner's equity of$10,227, additional investments of $4,533, withdrawals of $1,210, and revenue of $8,254, and expenses before adjustment amounted to $273. The adjustments totaled $6,291. Explain your answer (in 300 words).

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    Solution Preview

    Let's just follow this through with the info provided above in a logical manner:

    - we begin with equity of $10,227

    - to that, we add additional equity in the form of new investments totaling $4533

    - now we have $14,760 in total equity

    - then we subtract withdrawals of $1210

    - resulting in an adjusted balance of $13,550

    - ...

    Solution Summary

    These calculations define in and out movement relating to transactions which affect the equity value of a firm.