First, you need to calculate beginning equity. 120-65 = 55
Net income 20-11 = 9. Add that to beginning to get 64
The beginning assets and liabilities would have changed during the period, so that's why your formula doesn't work
If assets and liabilities at the start of the period are, respective 120,000 and 65,000 income for the period equals 20,000 and expenses equals 11,000. What is the equity at the end of the period?
Assets = Liabilities + Owner's Equity + Revenue - Expenses - Draws.
120,000 = 65,000 + x + 20,000 -11,000
the answer I got was 46,000, but for some odd reason, the answer is 64,000.
