Interactive Accounting Equation
Learn through hands-on practice
Foundation Module
Lesson 1 of 4
Learning Objective
Master the fundamental accounting equation: Assets = Liabilities + Equity
Scenario: Sarah's Bakery - Starting a Business
Sarah has started her bakery with $50,000 cash, $30,000 equipment, $20,000 inventory, and a $200,000 building. She financed this with a $100,000 bank loan, $100,000 mortgage, $15,000 accounts payable, $50,000 owner investment, and $35,000 retained earnings. Let's balance her accounting equation!
The Accounting Equation
Assets
$0
=
Liabilities
$0
+
Equity
$0
Keep building the equation...
Build the Accounting Equation
Drag the financial items to their correct categories to balance Sarah's accounting equation.
Available Items
Cash ($50,000)
Equipment ($30,000)
Inventory ($20,000)
Building ($200,000)
Bank Loan ($100,000)
Accounts Payable ($15,000)
Mortgage ($100,000)
Owner's Investment ($50,000)
Retained Earnings ($35,000)
Assets
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Liabilities
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Equity
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