On May 31 of the current year,the assets and liabilities of Riser,Inc.are as follows: Cash $20,500; Accounts Receivable,$7,250; Supplies,$650; Equipment,$12,000; Accounts Payable,$9,300.What is the amount of equity as of May 31 of the current year?
A)$49,700.
B)$13,050.
C)$20,500.
D)$31,100.
E)$40,400.

Question

Quizplus · Accepted Answer

To find the equity, we use the accounting equation: Assets = Liabilities + Equity. 
So, Equity = Assets - Liabilities. 
Using the given values: 
Equity = ($20,500 + $7,250 + $650 + $12,000) - $9,300 
Equity = $40,100 - $9,300 
Equity = $30,800 
Therefore, the amount of equity as of May 31 of the current year is $31,100. The correct answer is D.

On May 31 of the Current Year,the Assets and Liabilities