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 owner's equity as of May 31 of the current year?
A) $13,050.
B) $49,700.
C) $40,400.
D) $31,100.
E) $20,500.

Question

Quizplus · Accepted Answer

To find the owner's equity, we need to subtract the total liabilities from the total assets. 
Total assets = $20,500 + $7,250 + $650 + $12,000 = $40,400 
Total liabilities = $9,300 
Owner's equity = $40,400 - $9,300 = $31,100

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