Expanded Accounting Equation

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donnac922

Mar 13, 2007, 04:22 PM

I have answered these questions and I am wondering if they are correct?:(

For the following four cases, use the expanded accounting equation to compute the missing quantity.

ASSETS LIABILITIES CAPITAL STOCK RETAIN ED EARNINGS
Case A $20,000 $8,000 A $3,500
Case B 16,000 B $5,000 2,000
Case C C 11,000 14,000 32,000
Case D 46,000 30,000 20,000 D

Answers:
A. $12,000
B. $11,000
C. $25,000
D. Not enough data to complete.

Curlyben

Mar 13, 2007, 04:30 PM

What do you think the answer is and your reasoning behind it.
This way our accounting expert will be able to guide you better.

donnac922

Mar 13, 2007, 04:35 PM

I listed my answers at the bottom of the problem
A. $12,000
B. $11,000
C. $25,000
D. Not enough data to complete.

CaptainForest

Mar 13, 2007, 07:58 PM

Assets = Liabilities + Shareholder’s Equity (which is Capital Stock + Retained Earnings)

A)
20,000 = 8,000 + A + 3,500
A = 8,500

B)
16,000 = B + 5,000 + 2,000
B = 9,000

C)
C = 11,000 + 14,000 + 32,000
C = 57,000

D)
46,000 = 30,000 + 20,000 + D
D = -4,000

davecoach

Apr 14, 2007, 01:27 PM

I agree with Captain Forest. He rocks..,