Cornelia's Closet has the following account balances for the dates given:
$\begin{array}{llr}
&\underline{\text { October }} 1 & \underline{\text { October } 31}\
\text { Cash.} &\$40,000&60,000\
\text {Accounts Receivable } &40,000&38,000\
\text {Accounts payable } &6,000&?
\end{array}$

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:
$\begin{array}{llr}
&\underline{\text { October }} 1 & \underline{\text { October } 31}\
  \text {  Cash.} &\$40,000&60,000\
 \text {Accounts Receivable  } &40,000&38,000\
 \text {Accounts payable  } &6,000&?
\end{array}$

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:
$\begin{array}{llr}
&\underline{\text { October }} 1 & \underline{\text { October } 31}\
  \text {  Cash.} &\$40,000&60,000\
 \text {Accounts Receivable  } &40,000&38,000\
 \text {Accounts payable  } &6,000&?
\end{array}$

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