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Originally Posted by glendon729

Oops, sory I copied the wrong exercise. The answer is:

a) 8,500
b) 9,000
c) 57,000
d) <4,000> (negative 4,000)

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This problem was posted but I have no idea how the answer was found. Anyone?

njyesca6:confused:

First, it would help to post the original question.

However, I have done just that below:

For the following four cases, use the expanded accounting equation to compute the missing quantity.
Assets Liabilities Capital Stock Retained 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

Assets = Liabilities + Capital Stock + Retained Earnings

So in Case A, we have:
20,000 = 8,000 + A + 3,500

Therefore A is 8,500 to make both sides balance
8,000 + 8,500 + 3,500 = 20,000

To calculate 8,500….20,000-8,000-3,500

Do you understand that?

Let's try one more.

Case B
16,000 = B + 5,000 + 2,000
B = 16,000 – 5,000 – 2,000
B = 9,000

Can you figure the rest out or would you like me to keep going?

Can' Forest,

You answered they I felt the problem should be answered but I needed to reaffirm my conclusion. Thank you for your help!:p

njyesca6

You're welcome