Question

Assets and liabilities of a company are $150,000 and $30,000, respectively. Determine owner's equity using the accounting equation.

Answer 1

Owner's Equity= $ 150,000- $ 30,000= $ 120,000

Step-by-step explanation:

The accounting equation is Assets= Liabilities + Owner's Equity

$ 150,000= $ 30,000 + Owner's Equity

Owner's Equity= $ 150,000- $ 30,000= $ 120,000