1. Write the basic accounting equation. 2. Show the 3 steps to break down the basic accounting equation into the expanded accounting equation 3. Write the expanded accounting equation 1 2a 2b 2c 3 The Formula for the Expanded Accounting Equation is The expanded version of the accounting equation details the equity role in the basic accounting equation Assets = Liabilities + Owner's Equity where: Liabilities = All current and long-term debts and obligations Owner's Equity = Assets available to shareholders after all liabilities Here is the expanded accounting equation Assets = Liabilities + CC + BRE+R+E+D where: CC = Contributed Capital, capital provided by the original stockholders (also known as Paid-In Capital) BRE = Beginning Retained Earnings, earnings not distributed to stockholders from the previous period R=Revenue, what's generated from the ongoing operation of the company E Expenses, costs incurred to run operations of the business D = Dividends, earnings distributed to the stockholders of the company