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 stockholders' equity as of august 31 of the current year?

Question

Maren Wolf

Business

22 January, 10:35

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 stockholders' equity as of august 31 of the current year?

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Jamarcus Mayo · Answer 1

The value of equity in economics is obtained by first adding the values of the total current assets and long-term assets and then subtracting this sum to the summation of total current liabilities and long-term liabilities.

In this case, we classify each of the given data to the following categories included in the equation above. The current asset is $30,000; long term assets are for supplies and equipment and lastly, the current liability is $8500. Substituting to the given equation for equity computation above, then

Equity = $30,000 + $600 + $10000 - $8500 = $32000

This is the amount of money to construct Gladstone, Inc.