On August 31 of the current year, the assets and liabilities of Gladstone, Inc. are as follows: Cash $30,000; Supplies, $600; Equipment, $10,000; Accounts Payable, $8,500. What is the amount of owner's equity as of August 31 of the current year?
A) $12,100.
B) $49,100.
C) $30,900.
D) $10,900.
E) $32,100.

Question

Quizplus · Accepted Answer

Owner's equity is calculated as Assets - Liabilities. Total assets are $30,000 (Cash) + $600 (Supplies) + $10,000 (Equipment) = $40,600. Liabilities are $8,500 (Accounts Payable). Therefore, Owner's Equity = $40,600 - $8,500 = $32,100.

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