On December 31, the assets of a business are: Cash, $3,500, Accounts Receivable, $14,000, and Supplies, $1,050. The liabilities on December 31 total $7,600. The owner's equity on December 31 is:

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The owner's equity is calculated by subtracting the total liabilities from the total assets. Total assets = $3,500 (Cash) + $14,000 (Accounts Receivable) + $1,050 (Supplies) = $18,550. Owner's equity = Total assets - Total liabilities = $18,550 - $7,600 = $10,950.

On December 31, the Assets of a Business Are: Cash