Please help me...

Assets minus liabilities equals owners' equity

so it's not liabilities-assets=owners' equity?

Assets minus Liabilities equals Owners Equity

Total assets or current assets?

**** up man. That's wrong

Total Assets minus Total Liabilities equals Owners Equity.

I cannot figure out how my teacher got this answer. Please help.

Asstes = Liabilites + Owners Capital - Owners Withdraw + revenues -expenses
71,288 2,260 ? 14,420 53,085 28,675



How do I find the Owners Capital?

Quote:

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Originally Posted by beplmi

I cannot figure out how my teacher got this answer. Please help.

Asstes = Liabilites + Owners Capital - Owners Withdraw + revenues -expenses
71,288 2,260 ? 14,420 53,085 28,675



How do I find the Owners Capital?

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Sorry the numbers meshed together.

You start with the basic accounting equation, which is:
Assets = Liabilities + Owners Equity

This equation can be rearranged as follows:
Assets - Liabilities + Owners Equity - Liabilities or;
Assets - Liabilities = Owners Equity

Therefore:
Assets of $71,288 - Liabilities of $2,260 = Owners Equity of $69,028

The other information is not needed in this situation. If however you are trying to find starting Owners Equity and with the additional information provided you are trying to find the ending Owners Equity you would start with the Assets and Liabilities to get your beginning Owners Equity, then you would add revenues subtract expenses and subtract owners withdrawals(or dividends), which will equal ending Owners Equity.

Thanks! It was helpful