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    kisha17's Avatar
    kisha17 Posts: 1, Reputation: 1
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    #1

    Sep 17, 2007, 06:46 AM
    Accounting Equation
    Having trouble understanding the accounting equations:

    Assets = Liabilities + Equity

    a. __________________ = $122,000 + $34,000

    b. $141,000 = $121,000 + ______________

    c. $ 177,000 = $115,000 + $ 62,000


    Please help... :confused:
    billytalent's Avatar
    billytalent Posts: 7, Reputation: 3
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    #2

    Sep 17, 2007, 04:54 PM
    Accounting equation: Assets = Liabilities + Owners' Equity

    The right side of the equation kind of explains how you're going to finance your assets (you can also pay for them in cash).
    The equation has to be in balance, so

    a. Assets = 122,000 + 34,000 = 156,000
    b. Equity = 141,000 - 121,000 = 20,000
    c. correct
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