Question

Suppose Hunt Corporation has Accounts receivables of $65,000, Furniture totaling $205,000, and Cash of $52,000. The business has a $109,000 Note payable and owes a bank $81,000 on account. How much is Hunt’s stockholders’ equity?

Answer 1

Answer:

Stockholders’ equity is $132,000

Explanation:

Assets

Accounts receivables =   $65,000

Furniture totaling        = $205,000

Cash                            =    $52,000

Total Assets                =  $322,000

Equity and Liabilities

Equity

Stockholders’ equity    = $132,000

Liabilities

Note payable               = $109,000

bank                             =    $81,000

Total Equity & Liabilities= $322,000

* Equity=Total Assets-Liabilities=$322,000-($109,000+$81,000)=$132,000