Question

For Frank Music, what is the owner’s equity? Hint: Subtract the Bank Loan and the items in the last column from the sum of the remaining items (assets).

Answer 1

Owners equity=total assets-total liabilities

Assets includes
Cash on hand 5690
Customers owe 7232
Inventory 18550
Supplies 615.5
Store fixtures 2780
Building 42000
Land 30000
Total assets=106,867.5

Liabilities include
Bank loan 15315
Unpaid merchandise 5378
Taxes owed 810.10
Wages owed 525.45
Mortgage loan 21575
Total liabilities=43,603.55

So
Owners equity=106,867.5−43,603.55
=63,263.95