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

using the balance sheet, calculate xyz companys owners equity.\nxyz company - balance sheet\n|assets|liabilities|\n|--|--|--|\n|cash|$35,000|notes|$45,000|\n|inventory|$41,000|wages|$56,000|\n|property|$124,000|\n||owners equity|\n||stock|$50,000|\n||investment|$49,000|\nowner’s equity = $?
Answer
Explanation:
Step1: Calculate total assets
Total assets = Cash + Inventory+ Property = $35000 + 41000+124000=$200000$
Step2: Calculate total liabilities
Total liabilities = Notes + Wages=$45000 + 56000=$101000$
Step3: Use the accounting - equation
The accounting equation is Assets = Liabilities+ Owner's Equity. So, Owner's Equity = Assets - Liabilities. Owner's Equity = $200000-101000=$99000$
Answer:
$99000$