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emerald1710
Sep 18, 2009, 02:35 PM
These items were taken from balance sheet. Classify each of them as a liabilities(L), asset(A) or, shareholder's Equity(SE). Show the amounts in accounting equation.
I did this bit there is something wrong. Could you help me?

Account receivable - A - $a
Account payable - L - $b
Cash - A - $c
Inventories - A - $d
Investments - SE - $e
Equipment - A - $f
Notes payable - L - $g
Other assets - A - $h
Other liabilities - L - $i
Retained earnings - SE - $j
Share capital - SE - $k

ArcSine
Sep 18, 2009, 02:39 PM
"Investments" is actually an Asset, rather than a part of Shareholders Equity. Make that one change, and you should be good to go.

emerald1710
Sep 18, 2009, 02:41 PM
Thank you!

morgaine300
Sep 18, 2009, 05:34 PM
Don't confuse what has been invested into the company (stock) with outside stuff the company itself invests in. We don't just invest in companies - companies invest it other things as well.