16)Using the expanded accounting equation, solve for the missing amount Assets $ Liabilities 85 410 2,810 Common Stock ? Dividends 11,210 Revenues Expenses 57,120 25,150 Begin by selecting the formula for the expanded accounting equation

Accounting Jan 23, 2021

16)Using the expanded accounting equation, solve for the missing amount Assets $ Liabilities 85 410 2,810 Common Stock ? Dividends 11,210 Revenues Expenses 57,120 25,150 Begin by selecting the formula for the expanded accounting equation. Then enter the amounts to solve for the missing amount Assets Liabilities Common Stock Dividends Revenues Expenses $ 85,410 $ 2,810 S 11 210 57 120 S 25,150 +

Expert Solution

Ans: Total Assets are equal to liabilities and equities.

Now the figure of Profit & Loss is brought to equities retained earning through adding net profit and deducting distribution of dividend.

The Equation is

Assets = Liabilities + Common Stock + (revenue - expenses) - Dividend

$85,410 = $2,810 + Common Stock + ($57,120 - $25,150) - $11,210

$85410 = Common Stock + $23,570

Therefore Common Stock = $85,410 - $23,570 = $61,840

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