At The End Of The Year, A Corporation Has Assets Of $6,500 And Liabilities Of $2,000. How Much Is The Company's Equity At The End Of The Year?

Given:

Assets at the end = $6500 Liabilities at the end = $2000

Find:

Equity (E) at the end = ?

As we know Accounting Equation, so we have:

            Assets at the end    =    Liabilities at the end   +   Equity at the end
 
            E at the end         =      Assets at the end       -  Liabilities at the end
 
            E at the end         =            $6500                    -              $2000

E at the end = $4500

So, the equity of the company at the end of the accounting period is $4,500 and at this balance of stockholders' equity, both sides (left side or assets side and right side or liabilities & equity side) of balance sheet equalizes.