Chapter 01 - An Introduction to Accounting
1-15
Assets $4,800 + $5,400 = $10,200
Net Assets = Assets − Liabilities;
or Net Assets = Total Stockholders’ Equity
$10,200 − $4,800= $5,400
c.
Bell’s Candy Company
Accounting Equation
Claims
Assets = Liabilities + Stockholders’
Equity
$49,200 = $28,200 + $21,000
Stockholders’ Equity $49,200 – $28,200 = $21,000
Net Assets are equal to Stockholders’ Equity: $21,000
EXERCISE 1-7
Accounting Equation
Stockholders’ Equity
Common Retained
Company Assets = Liabilities + Stock + Earnings
A 123,000 = 25,000 + 48,000 + 50,000
B 40,000 = 3,000 + 7,000 + 30,000
C 75,000 = 15,000 + 18,000 + 42,000
D 125,000 = 45,000 + 60,000 + 20,000
EXERCISE 1-8
a. 2012
Assets = Liabilities + Common Stock + Retained Earnings
$156,000 = $85,600 + $52,400 + $18,000
Or: $156,000 − $85,600 − $52,400 = $18,000.