Posted by Tamra on .
Problem: For the following four cases, use the accounting equation to compute the missing quantity.
Note: I was given four cases but apparently I am missing something. For example the first case states:
$20,000 assets, $8,000 liabilities, and $3,500 in Retained Earnings. Find the Captial stock.
I know that assets = liabilities plus owner's equity. So would I subtract $11,500 from $20,000? How would i know how to find the capital stock?
In the other problems I would have to find the assets, libiabilties, or retained earnings.