Question

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

Cash $31,800;
Supplies, $740;
Equipment, $11,300;
Accounts Payable, $10,100.

What is the amount of equity as of August 31 of the current year?

Answer 1

The equity for this firm is $32,540

Step-by-step 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