Answered

Using the balance sheet, calculate XYZ Company's owner's equity.

\begin{tabular}{|l|l|l|l|}
\hline \multicolumn{4}{|c|}{XYZ Company - Balance Sheet} \\
\hline \multicolumn{2}{|c|}{Assets} & \multicolumn{2}{c|}{Liabilities} \\
\hline Cash & [tex]$\$[/tex]34,000[tex]$ & Notes & $[/tex]\[tex]$31,000$[/tex] \\
\hline Inventory & [tex]$\$[/tex]23,000[tex]$ & Wages & $[/tex]\[tex]$42,000$[/tex] \\
\hline Property & [tex]$\$[/tex]98,000[tex]$ & & \\
\hline & & \multicolumn{2}{|c|}{} \\
\hline & & \multicolumn{2}{|c|}{Owner's Equity} \\
\hline & & Stock & $[/tex]\[tex]$45,000$[/tex] \\
\hline & & Investment & [tex]$\$[/tex]37,000[tex]$ \\
\hline
\end{tabular}

Owner's Equity = \$[/tex][?]



Answer :

GinnyAnswer
To calculate XYZ Company's owner's equity, we need to follow these steps:

1. Determine Total Assets:
- Cash: \[tex]$34,000 - Inventory: \$[/tex]23,000
- Property: \[tex]$98,000 Total Assets = \$[/tex]34,000 + \[tex]$23,000 + \$[/tex]98,000 = \[tex]$155,000 2. Determine Total Liabilities: - Notes Payable: \$[/tex]31,000
- Wages Payable: \[tex]$42,000 Total Liabilities = \$[/tex]31,000 + \[tex]$42,000 = \$[/tex]73,000

3. Determine Total Owner's Equity:
- Stock: \[tex]$45,000 - Investment: \$[/tex]37,000

Total Owner's Equity = \[tex]$45,000 + \$[/tex]37,000 = \[tex]$82,000 Combining all this information, XYZ Company's owner's equity is \$[/tex]82,000.