The Expanded Accounting Equation Assets = Liabilities + Owner , Capital - Owner, Withdrawals + Revenues Expenses When solving for an unknownremember 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, Liabilities are $10,000, Owner, Capita $25,000, Owner, Withdrawals are $2,000, and Expenses are $4,000, solve for Revenues by subtracting Liabilitie and Owner, Capital from and adding Owner, Withdrawals and Expenses to both sides of the equal sign. The correct answer is $21,000. 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 = 10, 000 + 25, 000 - 2.000 + 21, 000 - 4, 000!

Activity 4.a - Balance the Expanded Accounting Equation Enter the missing value to balance the equation. Assets = Liabilities + Owner, Capital - Owner, Withdrawals + Revenues - Expenses 22,000 + 39,000 - 10,000 + 17,000 - 41,000 12,000 + 37,000 - 49,000 + 19,000 - 13,000 41,000 = 30,000 + - 11,000 + 2,000 - 1,000