The assets and liabilities of Matt Wesley Mechanics are as follows: Cash, $10 000; Accounts receivable, $8 200; Supplies, $1 050; Land, $25 000; Accounts payable, $6 530. What is the amount of owners' equity?

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Quizplus · Accepted Answer

Owners' equity is calculated as Assets - Liabilities. Total assets are $44,250 ($10,000 + $8,200 + $1,050 + $25,000) and total liabilities are $6,530. Therefore, owners' equity is $44,250 - $6,530 = $37,720.

The Assets and Liabilities of Matt Wesley Mechanics Are as Follows