using the balance sheet, calculate xyz companys owners equity.\nxyz company - balance sheet\n|assets|…

using the balance sheet, calculate xyz companys owners equity.\nxyz company - balance sheet\n|assets| |liabilities| |\n|--|--|--|--|\n|cash|$45,000|notes|$55,000|\n|inventory|$41,000|wages|$56,000|\n|property|$134,000| | |\n| | |owners equity| |\n| | |stock|$50,000|\n| | |investment|$59,000|\nowner’s equity = $?

using the balance sheet, calculate xyz companys owners equity.\nxyz company - balance sheet\n|assets| |liabilities| |\n|--|--|--|--|\n|cash|$45,000|notes|$55,000|\n|inventory|$41,000|wages|$56,000|\n|property|$134,000| | |\n| | |owners equity| |\n| | |stock|$50,000|\n| | |investment|$59,000|\nowner’s equity = $?

Answer

Explanation:

Step1: Calculate total assets

Total assets = Cash + Inventory+ Property = $45000 + 41000+134000=$220000$

Step2: Calculate total liabilities

Total liabilities = Notes + Wages=$55000 + 56000=$111000$

Step3: Use accounting - equation

According to the accounting equation Assets = Liabilities+ Owner's Equity. So, Owner's Equity = Assets - Liabilities. Owner's Equity = $220000-111000=$109000$

Answer:

$109000$