On July 1 of the current year, the assets and liabilities of John Wong, DVM, are as follows: Cash, $10,132 Accounts Receivable, $8,344 Supplies, $1,964 Land, $24,190 Accounts Payable, $5,665. What is the amount of owner's equity (John Wong's capital) as of July 1 of the current year?

Question

Business

Cleopatra

5 May, 03:52

On July 1 of the current year, the assets and liabilities of John Wong, DVM, are as follows: Cash, $10,132 Accounts Receivable, $8,344 Supplies, $1,964 Land, $24,190 Accounts Payable, $5,665. What is the amount of owner's equity (John Wong's capital) as of July 1 of the current year?

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Answers (1)

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Peyton Tapia · Answer 1

The answer is $38,965

Explanation:

Equity is the residual interest in a company. It is what is left after its liability has been deducted from its assets

Equity equals assets minus liability.

Total asset =

Cash, $10,132 plus Accounts Receivable, $8,344 plus Supplies, $1,964 plus Land, $24,190 ($10,132+$8,344+$1,964+$24,190)

=$44,630

Liability = $5,665

Equity = $44,630 - $5,665

=$38,965