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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]$43,000 & Notes & \$[/tex]45,000 \\
\hline Inventory & \[tex]$46,000 & Wages & \$[/tex]32,000 \\
\hline Property & \[tex]$103,000 & & \\
\hline & & \multicolumn{2}{|c|}{} \\
\hline & & \multicolumn{2}{|c|}{ Owner's Equity } \\
\hline & & Stock & \$[/tex]67,000 \\
\hline & & Investment & \[tex]$48,000 \\
\hline
\end{tabular}

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



Answer :

GinnyAnswer
To calculate XYZ Company's owner's equity, we need to follow the accounting equation:

[tex]\[ \text{Owner's Equity} = \text{Total Assets} - \text{Total Liabilities} \][/tex]

First, we calculate the total assets. The assets given are:

- Cash: \[tex]$43,000 - Inventory: \$[/tex]46,000
- Property: \[tex]$103,000 Adding these together gives us the total assets: \[ \text{Total Assets} = \$[/tex]43,000 + \[tex]$46,000 + \$[/tex]103,000 = \[tex]$192,000 \] Next, we calculate the total liabilities. The liabilities given are: - Notes: \$[/tex]45,000
- Wages: \[tex]$32,000 Adding these together gives us the total liabilities: \[ \text{Total Liabilities} = \$[/tex]45,000 + \[tex]$32,000 = \$[/tex]77,000 \]

Now, we can calculate the owner's equity using the accounting equation:

[tex]\[ \text{Owner's Equity} = \text{Total Assets} - \text{Total Liabilities} \][/tex]

Substituting the values we found:

[tex]\[ \text{Owner's Equity} = \$192,000 - \$77,000 = \$115,000 \][/tex]

Therefore, the owner's equity for XYZ Company is \$115,000.

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