Flores Realty Corporation had the following balance sheet accounts and balances: $$\begin{array} { l c l r }
\text { Accounts Payable } & \$ 6,000 & \text { Common Stock } & ? \
\text { Accounts Receivable } & 1,000 & \text { Equigment } & \$7 , 000 \
\text { Building } & ? & \text { Land } & 7,000 \
\text { Cash } & 3,000 & \text { Retained Earnings } & 2,000
\end{array}$$ If the balance of the Building account were $15,000 and if the equipment were sold for $7,000,what would be the total of stockholders' equity?

Question

Flores Realty Corporation had the following balance sheet accounts and balances: $$\begin{array} { l c l r } 
\text { Accounts Payable } & \$ 6,000 & \text { Common Stock } & ? \
\text { Accounts Receivable } & 1,000 & \text { Equigment } & \$7 , 000 \
\text { Building } & ? & \text { Land } & 7,000 \
\text { Cash } & 3,000 & \text { Retained Earnings } & 2,000
\end{array}$$ If the balance of the Building account were $15,000 and if the equipment were sold for $7,000,what would be the total of stockholders' equity?

Quizplus · Accepted Answer

Stockholders' equity is calculated as: Common Stock + Retained Earnings. The total assets are $33,000 (Cash $3,000 + Accounts Receivable $1,000 + Equipment $7,000 + Building $15,000 + Land $7,000). Liabilities are $6,000 (Accounts Payable). Therefore, Stockholders' Equity = Total Assets - Liabilities = $33,000 - $6,000 = $27,000.

Flores Realty Corporation Had the Following Balance Sheet Accounts and Balances