On May 31 of the current year,the assets and liabilities of Riser,Inc.are as follows: Cash $20,500;Accounts Receivable,$7,250;Supplies,$650;Equipment,$12,000;Accounts Payable,$9,300.What is the amount of owner's equity as of May 31 of the current year?
A)$8,300
B)$13,050
C)$20,500
D)$31,100
E)$40,400

Question

Quizplus · Accepted Answer

To find the amount of owner's equity, we need to use the accounting equation:

Assets = Liabilities + Owner's Equity

We are given the assets and liabilities, so we can substitute them in:

$20,500 + $7,250 + $650 + $12,000 = $9,300 + Owner's Equity

Simplifying the equation:

$40,400 = $9,300 + Owner's Equity

Subtracting $9,300 from both sides:

$31,100 = Owner's Equity

Therefore, the amount of owner's equity as of May 31 of the current year is $31,100.

On May 31 of the Current Year,the Assets and Liabilities