View Full Version : Stockholders' equity
jaggyemt
Feb 5, 2007, 06:53 AM
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
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
Jul 2, 2007, 11:27 PM
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
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