Sam invests $5,000 of his own money in his new auto detailing business.He then obtains a loan and builds a small workshop in his backyard for $10,000.At this point assets are ____,liabilities are ____,and owners' equity is ____.
A) $10,000;$5,000;$15,000
B) $15,000;$10,000;$5,000
C) $5,000;$0;$5,000
D) $15,000;$10,000;$0
E) $10,000;$5,000;$5,000

Question

Quizplus · Accepted Answer

Assets = $5,000 (from Sam's investment) + $10,000 (value of workshop) = $15,000
Liabilities = $10,000 (from the loan obtained) 
Owners' equity = $5,000 (Sam's initial investment)

Therefore, the correct option is B, where assets are $15,000, liabilities are $10,000 and owners' equity is $5,000.

Sam Invests $5,000 of His Own Money in His New