The Basic Accounting Equation Assets = Liabilities + Equity When solving for an unknown, remember to isolate the missing number on one side of the equation. For example, when calculating the missing number, if one side requires a subtraction, the number must also be subtracted from the opposite side of the equal sign. If Assets are $50,000 and Liabilities are $30,000, solve for Equity by subtracting $30,000 from both sides of the equal sign. The correct answer is $20,000 when $30,000 is subtracted from $50,000. Another technique is to verify your calculated answer by inserting it back into the equation and solving to validate the equation is in balance. \$50,000=\$30,000+\$20,000!

Activity 1.a - Balance the Basic Accounting Equation Enter the missing values to balance the equations. Assets = Liabilities + Equity = 45,000 + 39,000 49.000 = + 35,000 20,200 = 200 +