I am so lost in this subject and I have been trying to figure this out, can some one help me?

Asset $20,000
Liabilities$ 8,000
Capital stock?
Retained earnings $3,500

How would I know what the Capital Stock is with the giving information? Thanks.

Assets = Liabilities + Owner's Equity

In this case, Owner's Equity = Capital Stock + Retained Earnings

So,

20,000 = 8,000 + Capital Stock + 3,500
Capital Stock = 8,500

This is what I came up with also. Thank you so much.

Quote:

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Originally Posted by CaptainForest

Assets = Liabilities + Owner’s Equity

In this case, Owner’s Equity = Capital Stock + Retained Earnings

So,

20,000 = 8,000 + Capital Stock + 3,500
Capital Stock = 8,500

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