Answer :
To determine XYZ Company's owner's equity, we need to follow a series of steps to calculate total assets, total liabilities, and finally, the owner's equity using these values.
### Step 1: Calculate Total Assets
Total assets are the sum of all the asset items listed on the balance sheet. Here, we have the following asset items:
- Cash: \[tex]$45,000 - Inventory: \$[/tex]41,000
- Property: \[tex]$134,000 Adding these values together, we get: \[ \text{Total Assets} = 45,000 + 41,000 + 134,000 \] \[ \text{Total Assets} = 220,000 \] ### Step 2: Calculate Total Liabilities Total liabilities are the sum of all the liability items listed on the balance sheet. Here, we have the following liability items: - Notes: \$[/tex]55,000
- Wages: \[tex]$56,000 Adding these values together, we get: \[ \text{Total Liabilities} = 55,000 + 56,000 \] \[ \text{Total Liabilities} = 111,000 \] ### Step 3: Calculate Owner's Equity Owner's equity can be calculated using the accounting equation: \[ \text{Owner's Equity} = \text{Total Assets} - \text{Total Liabilities} \] Using our calculated values, we get: \[ \text{Owner's Equity} = 220,000 - 111,000 \] \[ \text{Owner's Equity} = 109,000 \] ### Conclusion Therefore, XYZ Company's owner's equity is \$[/tex]109,000.
### Step 1: Calculate Total Assets
Total assets are the sum of all the asset items listed on the balance sheet. Here, we have the following asset items:
- Cash: \[tex]$45,000 - Inventory: \$[/tex]41,000
- Property: \[tex]$134,000 Adding these values together, we get: \[ \text{Total Assets} = 45,000 + 41,000 + 134,000 \] \[ \text{Total Assets} = 220,000 \] ### Step 2: Calculate Total Liabilities Total liabilities are the sum of all the liability items listed on the balance sheet. Here, we have the following liability items: - Notes: \$[/tex]55,000
- Wages: \[tex]$56,000 Adding these values together, we get: \[ \text{Total Liabilities} = 55,000 + 56,000 \] \[ \text{Total Liabilities} = 111,000 \] ### Step 3: Calculate Owner's Equity Owner's equity can be calculated using the accounting equation: \[ \text{Owner's Equity} = \text{Total Assets} - \text{Total Liabilities} \] Using our calculated values, we get: \[ \text{Owner's Equity} = 220,000 - 111,000 \] \[ \text{Owner's Equity} = 109,000 \] ### Conclusion Therefore, XYZ Company's owner's equity is \$[/tex]109,000.