Question

Compute the missing amount in each category of the accounting equation. Assets Liabilities Stockholders' Equity (a) $247,000 $95,500 (b) $177,000 $70,000 TA $225,000 $314,000 $

Answer 1

Computation of missing amount in each category of the accounting equation:

Assets = Liabilities + Stockholder’s Equity (Accounting Equation)

a. Assets = $2,47,000

Stockholder’s Equity = $95,500

Liabilities = Assets – Stockholder’s Equity = $2,47,000 - $95,500 = $1,51,500

b. Assets = $1,77,000

Liabilities = $70,000

Stockholder’s Equity = Assets – Liabilities = $1,77,000 - $70,000 = $1,07,000

c. Liabilities = $2,25,000

Stockholder’s Equity = $3,14,000

Assets = Liabilities + Stockholder’s Equity = $2,25,000 + $3,14,000 = $5,39,000