On May 31 of the current year, the assets and liabilities of Riser, Inc. are as follows: Cash $27,000; Accounts Receivable, $7,950; Supplies, $1,300; Equipment, $12,700; Accounts Payable, $10,050. What is the amount of equity as of May 31 of the current year?

Question

Otis

Business

15 August, 14:56

On May 31 of the current year, the assets and liabilities of Riser, Inc. are as follows: Cash $27,000; Accounts Receivable, $7,950; Supplies, $1,300; Equipment, $12,700; Accounts Payable, $10,050. What is the amount of equity as of May 31 of the current year?

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Answers (1)

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Madden Fritz · Answer 1

The amount of equity as at May 31 of the current year is $38,900

Explanation:

In this question, we are asked to calculate the amount of equity as of May 31st of Riser Inc given the list and values of its liabilities and assets. We use a mathematical approach.

Mathematically,

Assets = Liabilities + Stockholders' Equity

Cash + Accounts Receivable + Supplies + Equipment = Accounts Payable + Stockholders' Equity

$27,000 + $7,950 + $1,300 + $12,700 = $10,050 + Stockholders' Equity

$48,950 = $10,050 + Stockholders' Equity

Stockholders' Equity = $48,950 - $10,050

Stockholders' Equity = $38,900