Let's analyze the information step-by-step to find the revenue recorded in 2023.
Given Information:
- The company began business on January 1, 2022, with an investment of $X,000 from stockholders (the exact amount is missing).
- In 2023:
- The company issued an additional $18,000 in stock.
- Paid $3,000 in dividends.
- Recorded $7,200 worth of expenses.
- We need to find the revenue recorded in 2023.
Important Points:
- Dividends do not affect revenue or expenses; they are distributions of profit.
- Stock issuance affects equity but not revenue.
- Expenses reduce net income.
- Revenue minus expenses equals net income (profit).
What else do we need?
To find revenue, we need either:
- Net income for 2023, or
- Change in retained earnings, or
- Some indication of profit or ending equity.
Since the initial investment amount is missing (shown as $,000), and no net income or ending equity is given, we cannot directly calculate revenue without additional information.
What can be done?
If you provide:
- The net income for 2023, or
- The ending retained earnings or equity balance, or
- The initial investment amount,
then we can calculate the revenue using the formula: Net Income = Revenue - Expenses and Ending Retained Earnings = Beginning Retained Earnings + Net Income - Dividends
Summary:
Item| Amount
---|---
Additional stock issued| $18,000
Dividends paid| $3,000
Expenses recorded| $7,200
Initial investment| Missing
Revenue| ?
Please provide the missing initial investment amount or net income/ending
equity to proceed with the calculation.
If you want, I can guide you through the calculation once you provide the missing data!
