Mirah Company compiled the following financial information as of December 31, 2020: $\begin{array}{lr}
\text { Revenues } & \$ 340,000 \
\text { Owner's Capital }(1 / 1 / 20) & 140,000 \
\text { Equipment } & 80,000 \
\text { Expenses } & 240,000 \
\text { Cash } & 90,000 \
\text { Owner's Drawings } & 20,000 \
\text { Supplies } & 20,000 \
\text { Accounts payable } & 40,000 \
\text { Accounts receivable } & 70,000
\end{array}$ Mirah's owner's equity on December 31, 2020 is

Question

Quizplus · Accepted Answer

Owner's equity is calculated by subtracting total liabilities from total assets. In this case, total assets are $400,000 and total liabilities are $180,000, so the owner's equity is $220,000. Therefore, the correct answer is C, $220,000.

Mirah Company Compiled the Following Financial Information as of December