Mike's Mulching (MM) had the following assets and liabilities: What would shareholders' equity be?
A) $2 300
B) $13 300
C) $31 000
D) None of the above

Question

Mike's Mulching (MM) had the following assets and liabilities:  What would shareholders' equity be?
A) $2 300 
B) $13 300 
C) $31 000 
D) None of the above

Quizplus · Accepted Answer

Shareholders' equity is calculated as follows:
Shareholders' equity = Total assets - Total liabilities
From the balance sheet provided, we can see that total assets are $13,300 and total liabilities are $0. Therefore, shareholders' equity would be $13,300.

Mike's Mulching (MM) Had the Following Assets and Liabilities