# Stockholder’s Equity Homework Help

## Best Stockholder’s Equity Homework help

Stockholder’s equity is also termed as shared equity, it is one of the important out of three elements of corporation’s balance sheets and accounting equations. It is overviewed as
Assets = Liability + Stockholder’s equity
It is viewed as the source for the corporation’s assets. It is also referred to as corporation’s total book value. Stockholder’s equity also represents the net value of a company or it also tells about the amount that would be returned to Shareholder’s if all the company’s assets are liquefied and all its debts are repaid.

### These are some of the formula which explains stockholder’s equity more clearly:

 Stockholder’s equity = Total Assets – Total Liabilities or total debt Shareholder’s equity ratio = Total stockholder’s equity / Total assets or Shareholder equity = Share Capital + Retained Earning – Treasury shares

### Computing Stockholder’s equity:

Stockholder’s equity is the accounting value of stockholder’s of any company. There are two important components of stockholder’s equity:

• Paid in capital: As the name suggests contributed capital, it is the money that the company has raised from investor’s through the sales of its stock. Paid in capital is broken into two parts they are:-
1. Paid in capital- par value of issued stock
2. Paid in capital- in excess of par value

Example of stockholder’s equity section of A shopping mall in the end of 2014 year balance sheet:

 Equity Common Stock 323 Capital in excess of par value 2,462 Retained Earnings 85,777 Accumulated other comprehensive income 7,169 Total shareholder’s equity                                   81,369

• Retained Earnings: The name suggests as cumulative amount of the company that has earned from the time company was created and not distributed to shareholders as dividend. Retained earnings does not represent the pool of liquid assets. Sometimes the earning is reinvested in the business.

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