Accounts 1400 25000 11000 10000 12000 stock Cash 4400 Soluti

Accounts 1,400 25,000 11,000 10,000 12,000 stock Cash 4,400

Solution

Answer

Assets

Liabilities

Equipments

18000

Accounts Payable

1400

Land

10000

Notes Payable

12000

Cash

4400

Total Liabilities

13400

Stockholders\' Equity

Common Stock

11000

Retained earnings*

8000

Total Stockholders\' Equity

19000

Total Assets

32400

Total Liabilities & Stockholders\' Equity

32400

Total Assets = Liabilities + Stockholder’s Equity
32400 = 13400 + Stockholders’ Equity.
Stockholders’ Equity = 32400 – 13400 = $19000

Common Stock + Retained earnings = Total Stockholders’ Equity
11000 + retained earnings = 19000
Retained earnings = 19000 – 11000 = $8000

Assets	Liabilities
Equipments	18000	Accounts Payable	1400
Land	10000	Notes Payable	12000
Cash	4400	Total Liabilities	13400
		Stockholders\' Equity
		Common Stock	11000
		Retained earnings*	8000
		Total Stockholders\' Equity	19000
Total Assets	32400	Total Liabilities & Stockholders\' Equity	32400