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    njyesca6's Avatar
    njyesca6 Posts: 2, Reputation: 1
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    #1

    Sep 27, 2007, 01:17 PM
    Expanded Accounting equation
    Quote Originally Posted by glendon729
    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)
    This problem was posted but I have no idea how the answer was found. Anyone?

    njyesca6:confused:
    CaptainForest's Avatar
    CaptainForest Posts: 3,645, Reputation: 393
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    #2

    Sep 27, 2007, 11:04 PM
    First, it would help to post the original question.

    However, I have done just that below:

    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

    Assets = Liabilities + Capital Stock + Retained Earnings

    So in Case A, we have:
    20,000 = 8,000 + A + 3,500

    Therefore A is 8,500 to make both sides balance
    8,000 + 8,500 + 3,500 = 20,000

    To calculate 8,500….20,000-8,000-3,500

    Do you understand that?

    Let's try one more.

    Case B
    16,000 = B + 5,000 + 2,000
    B = 16,000 – 5,000 – 2,000
    B = 9,000

    Can you figure the rest out or would you like me to keep going?
    njyesca6's Avatar
    njyesca6 Posts: 2, Reputation: 1
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    #3

    Sep 28, 2007, 06:30 AM
    Can' Forest,

    You answered they I felt the problem should be answered but I needed to reaffirm my conclusion. Thank you for your help!:p

    njyesca6
    CaptainForest's Avatar
    CaptainForest Posts: 3,645, Reputation: 393
    Ultra Member
    		  
    #4

    Sep 28, 2007, 06:06 PM
    You're welcome
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