Using the expanded accounting equation, solve for the missing amount Assets = $84,325
Liabilities = $2,560
Common Stock = ?
Dividends = $13,450
Revenues = $54,780
Expenses = $28,125

The expanding accounting equation is:

Assets = Liabilities + Stockholders Equity

                                 [Common Stock + Retained Earnings]

                                                               (Revenues - Expenses - Dividends)

Now, we replace the amounts in the formula

$84,325 = $2,560 + X

                              [  X  + R ]

                             ($54,780 - $28,125 - $13,450)

$84,325 = $2,560 + X

                              [  X  + R ]

                             ($54,780 - $28,125 - $13,450)

$84,325 = $2,560 + X

                              [  X  + $13,205 ]

$84,325 = $2,560 + X

                               [  68,560  + $13,205 ]

$84,325 = $2,560 + $81,765

Both sides are now equal to $84,325

Thus, Common Stock = $68,560

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