At this point in time, Barkatorium Pet Supplies' balance sheet shows $100,000 in assets and $90,000 in liabilities. The company's accounting system will show the owners' equity as $190,000.

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The fundamental accounting equation states: Assets = Liabilities + Owners equity. The equation can be manipulated by subtracting the Liabilities term from both sides of the equation and canceling the Liabilities term: Assets - Liabilities = Liabilities - Liabilities + Owners' equity. It is then restated as: Assets - Liabilities = Owners' equity. Therefore, $100,000 - $90,000 = $10,000.

At This Point in Time, Barkatorium Pet Supplies' Balance Sheet