Question

On May 31 of the current year, the assets and liabilities of Riser, Inc. are as follows: Cash $25,500; Accounts Receivable, $7,800; Supplies, $1,150; Equipment, $12,600; Accounts Payable, $9,850. What is the amount of equity as of May 31 of the current year?

Answer 1

$37,200

Step-by-step explanation:

In the balance sheet, the assets, liabilities, and stockholder equity is recorded. In this the accounting equation is used which is shown below:

Total assets = Total liabilities + stockholder equity

where,

Total assets = Cash + accounts receivable + supplies + equipment

= $25,500 + $7,800 + $1,150 + $12,600

= $47,050

And, the total liabilities is equal to the account payable i.e $9,850

So, the stockholder equity would be

= $47,050 - $9,850

= $37,200