Question

On July 1 of the current year, the assets and liabilities of John Wong, DVM, are as follows: Cash, $10,687; Accounts Receivable, $8,307; Supplies, $1,853; Land, $24,857; Accounts Payable, $5,710. What is the amount of stockholders' equity as of July 1 of the current year

Answer 1

Answer:

The amount of stockholders' equity as of July 1 of the current year is $39,994

Explanation:

In John Wong, DVM, on July 1 of the current year:

Total asset = Cash + Accounts Receivable + Supplies + Land = $10,687 + $8,307 + $1,853 + $24,857 = $45,704

Liabilities = Accounts Payable = $5,710

Basing on accounting equation:

Total asset = Liabilities + Stockholders' Equity

Stockholders' Equity  = Total asset - Liabilities = $45,704 - $5,710 = $39,994