Question

On August 31 of the current year, the assets and liabilities of Gladstone, Inc. are as follows:

Answer 1

Answer:

The equity for this firm is $32,540

Explanation:

Using the accounting equation we can solve for the equity:

assets = Liabilities + Equity

Equity = Assets - Liabilities

Now, we need to determiante the totals for assets and liabilities and sovle for equity:

Cash              31,800

Supplies             740

Equipment      11,300  

Total Assets  43,840

Liabilities      11,300

Equity = 43,840 - 11,300 = 32,540