Flores Realty Company had the following balance sheet accounts and balances: $\begin{array}{lrlr}
\text { Accounts Payable } & \$ 6,000 & \text { Earl Flores, Capital } & ? \
\text { Accounts Receivable } & 1,000 & \text { Equipment } & \$ 7,000 \
\text { Building } & 8,000 & \text { Land } & 7,000 \
\text { Cash } & 3,000 & & \
\end{array}$ What is the total of liabilities and owner's equity?

Question

Quizplus · Accepted Answer

The total assets are $26,000 ($1,000 + $7,000 + $8,000 + $7,000 + $3,000). Liabilities are $6,000. Therefore, owner's equity (Earl Flores, Capital) is $20,000 ($26,000 - $6,000). Total liabilities and owner's equity is $26,000 ($6,000 + $20,000).

Flores Realty Company Had the Following Balance Sheet Accounts and Balances