Stockholders’ equity is the owners’ claim in the net assets of the business. In other words, the residual of total assets after paying off all the liabilities of the business is called the stockholders’ equity. The accounting equation represents the total assets on one side and another side of the equation shows where these assets came from.
The stockholders’ equity can be calculated using the accounting equation as follows.
Assets = Liabilities + Stockholders’ equity
Stockholders’ Equity = Assets – Liabilities
Stockholders’ equity includes Ordinary Share capital, share premium, additional paid-up capital, preferred share capital, other reserves and retained earnings.
Use the following income statement and balance sheet for Jim’s Espresso:
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The comparative balance sheet of Merrick Equipment Co. for Dec.
The comparative balance sheet of Whitman Co. at December 31,
Edna Millay Inc. is a manufacturer of electronic components and accessories
Selected data for Dalton Company for 2018 and additional information on industry
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Massa Company, which has been operating for three years, provides
