Using the information below from the accounting records of Thomas Corporation, stockholders' claims to the company's resources amount to: Assets $ 1,200,000 Liabilities $ 800,000 Net income $ 100,000 Retained earnings $ 250,000

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Business

Erik Daugherty

30 October, 08:38

Using the information below from the accounting records of Thomas Corporation, stockholders' claims to the company's resources amount to: Assets $ 1,200,000 Liabilities $ 800,000 Net income $ 100,000 Retained earnings $ 250,000

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Answers (1)

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Barrett · Answer 1

Stock holder's claim in Thomas Corporation is $400,000

Explanation:

The accounting equation is the foundation for double entry accounting. It shows the relationship between assets, liabilities, and owner's equity.

Using the accounting equation, rearrange for Stockholder Equity.

Asset = Liabilities + Stockholder Equity

Asset - Liabilities = Stockholder Equity

1,200,000 - 800,000 = Stockholder Equity

400,000 = Stockholder Equity