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

Question

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

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