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3 years ago

Determine the following:_______

Business

1 answer:

MaRussiya [10]3 years ago

7 0

Answer:

Total Stockholders' equity = $124000

Retained earnings = $227000

Total assets = $788000

Explanation:

The basic accounting equation states that the value of total assets is always equal to the sum of the values of total liabilities and total stockholders' equity.

Total assets = Total liabilities + Total Stockholders' equity

451000 = 327000 + Total Stockholders' equity

Total Stockholders' equity = 451000 - 327000

Total Stockholders' equity = $124000

The total stockholders' equity section of a company can be further divided into two components namely common stock and retained earnings. Thus, the basic accounting equation can be rewritten as,

Total assets = Total liabilities + Common Stock + Retained earnings

787619000 = 226000 + 166000 + Retained earnings

Retained earnings = 619000 - 392000

Retained earnings = $227000

Total assets = Total liabilities + Common Stock + Retained earnings

Total assets = 401000 + 201000 + 186000

Total assets = $788000

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