If a corporation has assets of $200,000, liabilities of $30,000, and retained earnings of...
Question:
If a corporation has assets of $200,000, liabilities of $30,000, and retained earnings of $100,000, what is the amount of capital stock?
Stockholder's Equity
Stockholder's equity is a group of balance sheet accounts that represents the owners (or stockholders) of a company's total interest in the company. It includes the capital stock they have purchased as well as the earnings retained in the company.
Answer and Explanation: 1
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Remember that as per the accounting equation, assets = liabilities + equity. We can use this equation to find the answer:
| Assets | $200,000 |
| Liabilit... |
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The Components of Stockholder Equity
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Chapter 11 / Lesson 4
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Stockholder equity refers to the monetary value of a company to those who have stock in it. Study the definition and the components of stockholder equity, and the stockholder's equity statement.
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