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-   -   Accounting equation - Corporation (https://www.askmehelpdesk.com/showthread.php?t=397604)

  • Sep 18, 2009, 02:35 PM
    emerald1710
    Accounting equation - Corporation
    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
  • Sep 18, 2009, 02:39 PM
    ArcSine
    "Investments" is actually an Asset, rather than a part of Shareholders Equity. Make that one change, and you should be good to go.
  • Sep 18, 2009, 02:41 PM
    emerald1710
    Thank you!
  • Sep 18, 2009, 05:34 PM
    morgaine300

    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.

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