Question

Ballard Company reported assets of $500 and liabilities of $200. What amount will Ballard's report for stockholders' equity?

Answer 1

$300

Step-by-step explanation:

Data provided in the question

Assets reported = $500

Liabilities = $200

So, Stockholder equity is

= Total assets - total liabilities

= $500 - $200

= $300

By applying the accounting equation, that equal to

Total assets = Total liabilities + owners equity

We can find out the stockholder equity by deducting the total liabilities from the total assets