Cornelia's Closet has the following account balances for the dates given:
$$\begin{array} { l c c }
& \text { October } 1 & \text { October 31 } \
\text { Cash } & \$ 40,000 & 60,000 \
\text { Accounts Receivable } & 40,000 & 38,000 \
\text { Accounts payable } & 6,000 & ?
\end{array}$$
Also,its net income,for October 1 through October 31 was $20,000 and there were no dividends or stock issuances.Determine the equity at both October 1 and October 31.

Question

Cornelia's Closet has the following account balances for the dates given:
 $$\begin{array} { l c c } 
& \text { October } 1 & \text { October 31 } \
 \text { Cash } & \$ 40,000 & 60,000 \
\text { Accounts Receivable } & 40,000 & 38,000 \
\text { Accounts payable } & 6,000 & ?
\end{array}$$ 
Also,its net income,for October 1 through October 31 was $20,000 and there were no dividends or stock issuances.Determine the equity at both October 1 and October 31.

Quizplus · Accepted Answer

The Answer of Cornelia's Closet has the following account balances for the dates given:
 $$\begin{array} { l c c } 
& \text { October } 1 & \text { October 31 } \
 \text { Cash } & \$ 40,000 & 60,000 \
\text { Accounts Receivable } & 40,000 & 38,000 \
\text { Accounts payable } & 6,000 & ?
\end{array}$$ 
Also,its net income,for October 1 through October 31 was $20,000 and there were no dividends or stock issuances.Determine the equity at both October 1 and October 31.

Cornelia's Closet Has the Following Account Balances for the Dates