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    jaggyemt's Avatar
    jaggyemt Posts: 8, Reputation: 1
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    #1

    Feb 5, 2007, 06:53 AM
    Stockholders' equity
    If a particular company has retained earnings of 12,000, total assets totaling 38,000 and total liabilities of 20,000. How much is total stockholders' equity?
    moussahawas's Avatar
    moussahawas Posts: 12, Reputation: 0
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    #2

    Feb 6, 2007, 03:42 AM
    Assets = Liabilities + Owners' Equity (Stock Holders' Equity)

    Assets= 38,000
    Liabilities= 20,000

    then,
    Owners' Equity = 38,000 - 20,000 = 18,000

    In this case, the trick is giving you the retained earnings in the given, but that does not affect our method in calculation.

    Good Luck!

    Moussa Hawas
    Equity Research Analyst
    colegio's Avatar
    colegio Posts: 1, Reputation: 1
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    #3

    Jul 2, 2007, 11:27 PM
    Quote Originally Posted by jaggyemt
    If a particular company has retained earnings of 12,000, total assets totaling 38,000 and total liabilities of 20,000. How much is total stockholders' equity?
    How do you journalize a stockholder account?
    bhet's Avatar
    bhet Posts: 77, Reputation: 9
    Junior Member
    		  
    #4

    Jul 4, 2007, 08:11 PM
    remember your acctg equation:
    asset=liabilites+owners equity

    asset (38000) = liabilities (20,000)+ RE (12000) + capital (6000) (balancing figure)

    your total SHE would be, capital+retained earning.

    RE... 12000
    capital... 6000
    SHE... 18000
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