Question

On July 1 of the current year, the assets and liabilities of Wong Industries, are as follows: Cash, $15,000; Accounts Receivable, $12,300; Supplies, $3,100; Land, $35,000; Accounts Payable, $8,700. What is the amount of stockholders’ equity as of July 1 of the current year?A. $32,100
B. $43,700
C. $56,700
D. $65,400

Answer 1

Answer:

C. $56,700

Explanation:

From the accounting equation which shows the relationship between the elements of a balance sheet namely;asset, liabilities and equity.

Asset =  liabilities + equity

Total assets = $15,000 + $12,300 + $3,100 + $35,000 = $65,400

Total liabilities = $8,700

Stockholders’ equity = $65,400 - $8,700

= $56,700

The stake of the owners of the company is $56,700