WebOct 2, 2024 · The accounting equation emphasizes a basic idea in business; that is, businesses need assets in order to operate. There are two ways a business can finance the purchase of assets. First, it can sell shares of its stock to the public to raise money to purchase the assets, or it can use profits earned by the business to finance its activities. WebCommon Stock = 100,000 share * $ 1 per share = $ 100,000 Additional Paid-in-Capital = 100,000 shares * ($ 100 – $ 1) = $ 9,900,000 Non-Par Value Stock No par value stock …
Accounting Equation Formula & Overview - Study.com
WebThe expanded accounting equation lengthens the basic accounting equation (Assets = Liabilities + Shareholders’ Equity). It shows items within the shareholders’ equity section … Webcr. Common stock $19,500 To record contribution by owner and issuance of stock 2) dr. Supplies $1,000 cr. Cash $1,000 To cord purchase of supplies 3) d. Rent expense $750 cr. Cash $750 To record rent payment 4) dr. Accounts receivable $1,500 cr. Service revenue $1,500 To bill client for services provided 5) dr. Retained earnings $300 cr. Cash $300 desk chair for knee pain
Accounting Skills Assessment Practice Exam Page 1 of 11
WebCommon Stock $5 par Value Preferred Stock $10 par value 8% cumulative shares, 5000 shares Additional Paid In Capital Common Shares Additional Paid in Capital Preferred Shares Treasury Shares Common Retained Earnings Accumulated Other Comprehensive Loss** date of the **Note. WebThe new accounting equation would show: Assets $89,300 (Cash $68,000 + Accounts Receivable $5,000 + Supplies $500 + Prepaid Rent $1,800 + Equipment $5,500 + Truck … WebDec 26, 2024 · Common stocks are listed in the balance sheet under the stockholder equity section. The balance sheet is comprised of three elements: Assets, Liabilities, and Stockholder equity. The general … chucklevision goofy golfers