Question

On May 31 of the current year, the assets and liabilities of Riser, Inc. are as follows: Cash $16,800; Accounts Receivable, $7,050; Supplies, $700; Equipment, $11,750; Accounts Payable, $9,000. What is the amount of owner's equity as of May 31 of the current year?

Answer 1

Answer:

$27,300

Explanation:

Riser Inc. had the following liabilities and assets on May 31 of the current year

Cash= $16,800

Account receivables= $7,050

Supplies= $700

Equipment= $11,750

Account payable= $9,000

Since Assets = Liabilities+ stockholder's equity

The stockholder's equity can be calculated as follows

Cash+Account receivables+Supplies+Equipment= Account payable+stockholder's equity

$16,800+$7,050+$700+$11,750=$9,000+stockholder's equity

$36,300=$9,000+stockholder's equity

Stockholder's equity= $36,300-$9,000

Stockholder's equity= $27,300

Hence the amount of owner's equity as of May 31 of the current year is $27,300