Sure! Let's go through the table step-by-step to find the missing values using the accounting equation:
### Accounting Equation
The basic accounting equation is:
[tex]\[ \text{Assets} = \text{Liabilities} + \text{Equity} \][/tex]
where:
- Assets (A) represent the total resources owned by the entity.
- Liabilities (L) represent the total debts owed by the entity.
- Equity (E) represents the owner's residual interest in the entity.
Let's fill in the table using the above equation:
### Step-by-Step Solution
1. First Row:
- Assets (A1) = 17,000
- Liabilities (L1) = ?
- Equity (E1) = 4,000
Using the accounting equation:
[tex]\[ \text{Assets} = \text{Liabilities} + \text{Equity} \][/tex]
Plugging in the values we have:
[tex]\[ 17,000 = \text{Liabilities} + 4,000 \][/tex]
Solving for Liabilities:
[tex]\[ \text{Liabilities} = 17,000 - 4,000 \][/tex]
[tex]\[ \text{Liabilities} = 13,000 \][/tex]
So, the missing value for the first row is:
- Liabilities (L1) = 13,000
2. Second Row:
- Assets (A2) = 40,000
- Liabilities (L2) = 22,000
- Equity (E2) = ?
Using the accounting equation:
[tex]\[ \text{Assets} = \text{Liabilities} + \text{Equity} \][/tex]
Plugging in the values we have:
[tex]\[ 40,000 = 22,000 + \text{Equity} \][/tex]
Solving for Equity:
[tex]\[ \text{Equity} = 40,000 - 22,000 \][/tex]
[tex]\[ \text{Equity} = 18,000 \][/tex]
So, the missing value for the second row is:
- Equity (E2) = 18,000
3. Third Row:
- Assets (A3) = ?
- Liabilities (L3) = 13,000
- Equity (E3) = 43,000
Using the accounting equation:
[tex]\[ \text{Assets} = \text{Liabilities} + \text{Equity} \][/tex]
Plugging in the values we have:
[tex]\[ \text{Assets} = 13,000 + 43,000 \][/tex]
Solving for Assets:
[tex]\[ \text{Assets} = 56,000 \][/tex]
So, the missing value for the third row is:
- Assets (A3) = 56,000
### Completed Table
Now, with all the missing values filled in, the table looks like this:
[tex]\[
\begin{tabular}{ccc}
\text{Assets} & \text{Liabilities} & \text{Equity} \\
17,000 & 13,000 & 4,000 \\
40,000 & 22,000 & 18,000 \\
56,000 & 13,000 & 43,000 \\
\end{tabular}
\][/tex]
So, the missing values are:
- First Row: Liabilities = 13,000
- Second Row: Equity = 18,000
- Third Row: Assets = 56,000
These values ensure that the accounting equation holds true for all the rows.
