Question
A corporation has 86000 in total assets 33000 in total liabilities and a 15600 credit balance in retained earnings what is the balance in the contributed capital accounts?
Answer
The balance in the contributed capital accounts is $37400.
- Find out the equity balance of the corporation.
- Equity = Total Assets - Total Liabilities
- Equity = 86000 - 33000 = 53000
- Find out the balance in the contributed capital accounts.
- Contributed Capital = Equity - Retained Earnings
- Contributed Capital = 53000 - 15600 = 37400