Final answer:
To compute the missing financial statement amounts using the accounting equation, we rearrange the equation and calculate the values based on the given information. The same process is followed for the expanded accounting equation, which includes additional components like revenues, expenses, and drawings.
Step-by-step explanation:
To compute the missing financial statement amounts using the accounting equation, we need to understand the components of the equation. The accounting equation is:
Assets = Liabilities + Owner's Equity
By rearranging the equation, we can calculate the missing amounts. For example, if assets and liabilities are given, we can find owner's equity by subtracting liabilities from assets.
To compute the missing financial statement amounts using the expanded accounting equation, we consider additional components such as revenues, expenses, and drawings. The expanded accounting equation is:
Assets = Liabilities + Owner's Equity + Revenues - Expenses - Drawings
By rearranging the equation and substituting the given values, we can calculate the missing amounts for each category.