Question

Using the rules of algebra, determine the missing dollar amount in each equation.

Assets
?
$25,000
$10,000

=

Liabilities
$9,000
?
$2,000
+
Owner's Equity.
$21,000
$11,000
?

Answer 1

In the order of the ? marks:

A. $30,000 (Assets)

B. $14,000 (Liabilities), and

C. $8,000 (Equity)

Explanation:

See the attached worksheet. The relationship among the three classifications is:

Assets - Liabilities = Equity

Each mising data point has two of the other variables. Use the above relationship to determine the missing values.