Question

Presented below is the basic accounting equation. Determine the missing amounts.

Assets = Liabilities + Owner's Equity
(a) $93,000 $60,000 $[Blank]
(b) $[Blank] $31,000 $79,000
(c) $99,000 $[Blank] $43,000
1) $93,000 $60,000 $[Blank]
2) $[Blank] $31,000 $79,000
3) $99,000 $[Blank] $43,000

Answer 1

To determine the missing amounts in the basic accounting equation, we solve for the missing variable using the relationship that Assets = Liabilities + Owner's Equity for each given scenario, resulting in $33,000, $110,000, and $56,000, respectively.

Step-by-step explanation:

Basic Accounting Equation Examples

The basic accounting equation is Assets = Liabilities + Owner's Equity. To find the missing amounts, we just need to rearrange the equation accordingly for each scenario.

1. $93,000 (Assets) = $60,000 (Liabilities) + [Owner's Equity]
   To find the missing Owner's Equity: Owner's Equity = Assets - Liabilities = $93,000 - $60,000 = $33,000.
2. [Assets] = $31,000 (Liabilities) + $79,000 (Owner's Equity)
   To find the missing Assets: Assets = Liabilities + Owner's Equity = $31,000 + $79,000 = $110,000.
3. $99,000 (Assets) = [Liabilities] + $43,000 (Owner's Equity)
   To find the missing Liabilities: Liabilities = Assets - Owner's Equity = $99,000 - $43,000 = $56,000.

Each entry correctly balances the basic accounting equation, maintaining the integrity of the financial statement.