Expanded Accounting Equation
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

A = 8500
B = 9000
C = 57,000
D = -4000

The answer is:

a) 15,500
b) 9,000
c) <7,000>
d) 4,000

Quote:

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Originally Posted by Ost9095

Expanded Accounting Equation
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

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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)

Quote:

---

Originally Posted by Ost9095

Expanded Accounting Equation
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

---

Can you show me how to perform this calculation?

Tina and glendon, we are not here to do other people's homework for them. No one learns anything that way and it breaks our rules. You two and original poster, please see our guidelines for posting homework problems here:

https://www.askmehelpdesk.com/financ...-b-u-font.html

charles, the accounting equation:
Assets = Liabilities + Equity
By saying the "expanded equation," all they are doing is splitting the equity into capital stock and retained earnings. i.e.:
Assets = Liabilities + Stock + Retained Earnings.
The three numbers in the columns are the first three, leaving retained earnings as a blank to be solved. Hence, it's just a matter of taking the left side (assets) and finding out the missing number to make the right side equal it.
20,000 = 8000 + 3500 +?
So the missing number is 8500.
Etc.

Except C doesn't make a whole heck of a lot of sense.

Case A: $23,000 $11,000 A $ 4,500
Case B: 17,500 B $ 4,500 3,600
Case C: C 14,000 11,000 27,000
Case D: 45,000 29,000 18,000 D

Case A: $23,000 $11,000 A $ 4,500
Case B: 17,500 B $ 4,500 3,600
Case C: C 14,000 11,000 27,000
Case D: 45,000 29,000 18,000 D

Scoffner1985, did you read the last post of mine? We are not here to do your homework for you. I already posted about how to solve these kinds of problems. Have you bothered to read that and make any attempt to do this. (They are not difficult if you will read what I wrote.)

Also please start your own threads instead of dragging up old ones. It's time-consuming scrolling through some old thread with irrelevant posts to get to yours. It just takes us longer to answer everyone when people do things like that.

Hey morgan that is pretty useful. Can you explain though how I would find the capital stock. I'm trying really hard to figure it out.