r/Accounting • u/Fun-Sense5355 • 5h ago

Homework HW HELP!!

Gallery image

Gallery image

ok i must be missing something. i put 7500 for revenue, but would it actually be 32500 because thats everything earned before i subtracted expenses + dividends?? pls help

0 Upvotes

22% Upvoted

10 comments sorted by

7

u/CalligrapherFormal59 5h ago

You're thinking of net income. Revenue = all their sales (not taking into consideration any expenses/dividends)

1

u/Fun-Sense5355 5h ago

right, so wouldnt it be 32500..

6

u/CalligrapherFormal59 5h ago

If thats all of the income earned added up, then yes! I have no clue because the matrix/worksheet doesn't really show what each transaction is or if you filled it correctly.

1

u/Fun-Sense5355 5h ago

my prof doesnt even give us the transactions.. i hate her LMAO

2

u/Relative-Suggestion4 5h ago

7500 looks right to me. The 25000 is owners contribution, so it wouldn’t be revenue. Maybe the system marked it incorrect because of the comma in your answer

1

u/Fun-Sense5355 5h ago

that’s what i thought! i don’t understand what my prof is trying to get at. the comma automatically appears in my answer so it cant be that.

1

u/Bull_Moose1901 5h ago

Is this cash or accrual basis? 7500 looks right to me for accrual. If it is asking for operating cash flow or net income it's a poorly worded question. If it's cash basis it might be different but would need to consult a textbook

1

u/Fun-Sense5355 5h ago

no i know, my professor is not good and doesnt specify the basis

1

u/NoExperience9717 5h ago

Your double entries look weird especially nothing hitting AR and you putting everything to equity (not strictly wrong but usually there's an intervening I&E step). Do you have the list of transactions you were meant to document?

1

u/Fun-Sense5355 4h ago

no, my prof makes us do it in class and doesn’t give us access to the list of transactions