1. the basic accounting equation\nuse the basic accounting equation to complete the table below for each of…

1. the basic accounting equation\nuse the basic accounting equation to complete the table below for each of the following independent scenarios:\n1. gretchen inc. has the following: liabilities of $32,500, retained earnings of $84,300, and common stock of $63,200. find the value of their assets.\n2. douville co. has assets totaling $348,800 and its stockholders equity equals half of its total assets. what is the value of their liabilities?\n3. tj & sons llc recorded unearned revenue of $76,000, notes payable of $2,300, prepaid rent of $41,000, and inventory of $98,000. what is the value of their stockholders equity?\n4. b & k corp. owns equipment worth $27,700 and has $2,900 in accounts payable. find the value of their stockholders equity.\n|assets|liabilities|stockholders equity|\n|----|----|----|\n|1|\n|2|\n|3|\n|4|
Answer
Explanation:
Step1: Recall basic accounting equation
Assets = Liabilities + Stockholders' Equity, where Stockholders' Equity = Common Stock + Retained Earnings
Step2: Solve for Gretchen Inc.
Stockholders' Equity = $84,300 + 63,200=$147,500. Using the accounting equation, Assets = $32,500+147,500 = $180,000
Step3: Solve for Douville Co.
Stockholders' Equity = $\frac{348,800}{2} = $174,400$. Using the accounting equation, Liabilities = $348,800 - 174,400=$174,400
Step4: Identify liabilities and assets for TJ & Sons LLC
Liabilities = $76,000 + 2,300=$78,300. Assets = $41,000+98,000 = $139,000. Using the accounting equation, Stockholders' Equity = $139,000 - 78,300=$60,700
Step5: Identify liabilities and assets for B & K Corp.
Assets = $27,700$, Liabilities = $2,900$. Using the accounting equation, Stockholders' Equity = $27,700 - 2,900=$24,800
Answer:
| Assets | Liabilities | Stockholders' Equity |
|---|---|---|
| $180,000 | $32,500 | $147,500 |
| $348,800 | $174,400 | $174,400 |
| $139,000 | $78,300 | $60,700 |
| $27,700 | $2,900 | $24,800 |