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?

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

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Originally Posted by jaggyemt

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?

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How do you journalize a stockholder account?

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