The balance sheet for Jim's Hardware has the following items listed. Current Liabilities, $25,345; Long -Term Debt, $100,000; Total Liabilities, $125,345; Total Assets, $325,490. What is the Owner's Equity for this company?
A) $200,145
B) $25,345
C) $225,490
D) Cannot calculate with the information provided.

Question

Quizplus · Accepted Answer

Owner's Equity is calculated as Total Assets minus Total Liabilities. Therefore, $325,490 - $125,345 = $200,145.

The Balance Sheet for Jim's Hardware Has the Following Items