Owner’s Equity - Owner’s equity is an important component of the balance sheet . Owner’s equity or capital represents the amount invested in the business minus the withdrawals made from the business plus the net income (or minus the net loss) since the business began. To determine: The owner’s equity for Ernest Consulting

Question

Want to see more full solutions like this?

Answer 1

Question

Definition Definition Financial statement that provides a snapshot of an organization's financial position at a specific point in time. It summarizes a company's assets, liabilities, and shareholder's equity, detailing what the company owns, what it owes, and what is left over for its owners. The balance sheet serves as a crucial tool to assess the financial health and stability of a company, as well as to help management make informed decisions about its future investments and financial obligations.

Chapter 1, Problem 16E

To determine

Concept Introduction:

Owner’s Equity - Owner’s equity is an important component of the balance sheet. Owner’s equity or capital represents the amount invested in the business minus the withdrawals made from the business plus the net income (or minus the net loss) since the business began.

To determine: The owner’s equity for Ernest Consulting

Expert Solution & Answer

Explanation of Solution

The owner’s equity can be determined using the two methods as explained below:

Alternative 1:

Given in question:

$C a s h = $ 11, 360$

$A c c o u n t s r e c e i v a b l e = 14, 000$

$O f f i c e \sup p l i e s = 3, 250$

$L a n d = 46, 000$

$O f f i c e e q u i p m e n t = 18, 000$

$A c c o u n t s p a y a b l e = 8, 500$

$O w n e r' s e q u i t y = A s s e t s - L i a b i l i t i e s$

$\begin{array}{l} = C a s h + A c c o u n t s r e c e i v a b l e + O f f i c e \sup p l i e s + L a n d + O f f i c e e q u i p m e n t - A c c o u n t s p a y a b l e \\ = 11, 360 + 14, 000 + 3, 250 + 46, 000 + 18, 000 - 8, 500 \\ = $ 84, 110 \end{array}$

Alternative 2:

$\begin{array}{l} N e t i n c o m e (A s p e r E x e r c i s e 1 - 15) = $ 2, 410 \\ O w n e r' s i n v e s t m e n t = $ 84, 000 \\ O w n e r' s w i t h d r a w a l s = 2, 000 \\ O w n e r' s e q u i t y = O w n e r' s i n v e s t m e n t + N e t i n c o m e - O w n e r' s w i t h d r a w a l s \\ = 84, 000 + 2, 410 - 2, 000 \\ = $ 84, 410 \end{array}$

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Students have asked these similar questions

What is the total manufacturing cost per unit under the abc system on these general accounting question?

I want to correct answer accounting questions

Give correct answer this general accounting question

Answer 2

Question

Definition Definition Financial statement that provides a snapshot of an organization's financial position at a specific point in time. It summarizes a company's assets, liabilities, and shareholder's equity, detailing what the company owns, what it owes, and what is left over for its owners. The balance sheet serves as a crucial tool to assess the financial health and stability of a company, as well as to help management make informed decisions about its future investments and financial obligations.

Chapter 1, Problem 16E

To determine

Concept Introduction:

Owner’s Equity - Owner’s equity is an important component of the balance sheet. Owner’s equity or capital represents the amount invested in the business minus the withdrawals made from the business plus the net income (or minus the net loss) since the business began.

To determine: The owner’s equity for Ernest Consulting

Expert Solution & Answer

Explanation of Solution

The owner’s equity can be determined using the two methods as explained below:

Alternative 1:

Given in question:

$C a s h = $ 11, 360$

$A c c o u n t s r e c e i v a b l e = 14, 000$

$O f f i c e \sup p l i e s = 3, 250$

$L a n d = 46, 000$

$O f f i c e e q u i p m e n t = 18, 000$

$A c c o u n t s p a y a b l e = 8, 500$

$O w n e r' s e q u i t y = A s s e t s - L i a b i l i t i e s$

$\begin{array}{l} = C a s h + A c c o u n t s r e c e i v a b l e + O f f i c e \sup p l i e s + L a n d + O f f i c e e q u i p m e n t - A c c o u n t s p a y a b l e \\ = 11, 360 + 14, 000 + 3, 250 + 46, 000 + 18, 000 - 8, 500 \\ = $ 84, 110 \end{array}$

Alternative 2:

$\begin{array}{l} N e t i n c o m e (A s p e r E x e r c i s e 1 - 15) = $ 2, 410 \\ O w n e r' s i n v e s t m e n t = $ 84, 000 \\ O w n e r' s w i t h d r a w a l s = 2, 000 \\ O w n e r' s e q u i t y = O w n e r' s i n v e s t m e n t + N e t i n c o m e - O w n e r' s w i t h d r a w a l s \\ = 84, 000 + 2, 410 - 2, 000 \\ = $ 84, 410 \end{array}$

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 3

Question

Definition Definition Financial statement that provides a snapshot of an organization's financial position at a specific point in time. It summarizes a company's assets, liabilities, and shareholder's equity, detailing what the company owns, what it owes, and what is left over for its owners. The balance sheet serves as a crucial tool to assess the financial health and stability of a company, as well as to help management make informed decisions about its future investments and financial obligations.

Chapter 1, Problem 16E

To determine

Concept Introduction:

Owner’s Equity - Owner’s equity is an important component of the balance sheet. Owner’s equity or capital represents the amount invested in the business minus the withdrawals made from the business plus the net income (or minus the net loss) since the business began.

To determine: The owner’s equity for Ernest Consulting

Expert Solution & Answer

Explanation of Solution

The owner’s equity can be determined using the two methods as explained below:

Alternative 1:

Given in question:

$C a s h = $ 11, 360$

$A c c o u n t s r e c e i v a b l e = 14, 000$

$O f f i c e \sup p l i e s = 3, 250$

$L a n d = 46, 000$

$O f f i c e e q u i p m e n t = 18, 000$

$A c c o u n t s p a y a b l e = 8, 500$

$O w n e r' s e q u i t y = A s s e t s - L i a b i l i t i e s$

$\begin{array}{l} = C a s h + A c c o u n t s r e c e i v a b l e + O f f i c e \sup p l i e s + L a n d + O f f i c e e q u i p m e n t - A c c o u n t s p a y a b l e \\ = 11, 360 + 14, 000 + 3, 250 + 46, 000 + 18, 000 - 8, 500 \\ = $ 84, 110 \end{array}$

Alternative 2:

$\begin{array}{l} N e t i n c o m e (A s p e r E x e r c i s e 1 - 15) = $ 2, 410 \\ O w n e r' s i n v e s t m e n t = $ 84, 000 \\ O w n e r' s w i t h d r a w a l s = 2, 000 \\ O w n e r' s e q u i t y = O w n e r' s i n v e s t m e n t + N e t i n c o m e - O w n e r' s w i t h d r a w a l s \\ = 84, 000 + 2, 410 - 2, 000 \\ = $ 84, 410 \end{array}$

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 4

Question

Definition Definition Financial statement that provides a snapshot of an organization's financial position at a specific point in time. It summarizes a company's assets, liabilities, and shareholder's equity, detailing what the company owns, what it owes, and what is left over for its owners. The balance sheet serves as a crucial tool to assess the financial health and stability of a company, as well as to help management make informed decisions about its future investments and financial obligations.

Chapter 1, Problem 16E

To determine

Concept Introduction:

Owner’s Equity - Owner’s equity is an important component of the balance sheet. Owner’s equity or capital represents the amount invested in the business minus the withdrawals made from the business plus the net income (or minus the net loss) since the business began.

To determine: The owner’s equity for Ernest Consulting

Expert Solution & Answer

Explanation of Solution

The owner’s equity can be determined using the two methods as explained below:

Alternative 1:

Given in question:

$C a s h = $ 11, 360$

$A c c o u n t s r e c e i v a b l e = 14, 000$

$O f f i c e \sup p l i e s = 3, 250$

$L a n d = 46, 000$

$O f f i c e e q u i p m e n t = 18, 000$

$A c c o u n t s p a y a b l e = 8, 500$

$O w n e r' s e q u i t y = A s s e t s - L i a b i l i t i e s$

$\begin{array}{l} = C a s h + A c c o u n t s r e c e i v a b l e + O f f i c e \sup p l i e s + L a n d + O f f i c e e q u i p m e n t - A c c o u n t s p a y a b l e \\ = 11, 360 + 14, 000 + 3, 250 + 46, 000 + 18, 000 - 8, 500 \\ = $ 84, 110 \end{array}$

Alternative 2:

$\begin{array}{l} N e t i n c o m e (A s p e r E x e r c i s e 1 - 15) = $ 2, 410 \\ O w n e r' s i n v e s t m e n t = $ 84, 000 \\ O w n e r' s w i t h d r a w a l s = 2, 000 \\ O w n e r' s e q u i t y = O w n e r' s i n v e s t m e n t + N e t i n c o m e - O w n e r' s w i t h d r a w a l s \\ = 84, 000 + 2, 410 - 2, 000 \\ = $ 84, 410 \end{array}$

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 5

Chapter 1, Problem 16E

To determine

Concept Introduction:

Owner’s Equity - Owner’s equity is an important component of the balance sheet. Owner’s equity or capital represents the amount invested in the business minus the withdrawals made from the business plus the net income (or minus the net loss) since the business began.

To determine: The owner’s equity for Ernest Consulting

Expert Solution & Answer

Explanation of Solution

The owner’s equity can be determined using the two methods as explained below:

Alternative 1:

Given in question:

$C a s h = $ 11, 360$

$A c c o u n t s r e c e i v a b l e = 14, 000$

$O f f i c e \sup p l i e s = 3, 250$

$L a n d = 46, 000$

$O f f i c e e q u i p m e n t = 18, 000$

$A c c o u n t s p a y a b l e = 8, 500$

$O w n e r' s e q u i t y = A s s e t s - L i a b i l i t i e s$

$\begin{array}{l} = C a s h + A c c o u n t s r e c e i v a b l e + O f f i c e \sup p l i e s + L a n d + O f f i c e e q u i p m e n t - A c c o u n t s p a y a b l e \\ = 11, 360 + 14, 000 + 3, 250 + 46, 000 + 18, 000 - 8, 500 \\ = $ 84, 110 \end{array}$

Alternative 2:

$\begin{array}{l} N e t i n c o m e (A s p e r E x e r c i s e 1 - 15) = $ 2, 410 \\ O w n e r' s i n v e s t m e n t = $ 84, 000 \\ O w n e r' s w i t h d r a w a l s = 2, 000 \\ O w n e r' s e q u i t y = O w n e r' s i n v e s t m e n t + N e t i n c o m e - O w n e r' s w i t h d r a w a l s \\ = 84, 000 + 2, 410 - 2, 000 \\ = $ 84, 410 \end{array}$

Answer 6

Chapter 1, Problem 16E

To determine

Concept Introduction:

Owner’s Equity - Owner’s equity is an important component of the balance sheet. Owner’s equity or capital represents the amount invested in the business minus the withdrawals made from the business plus the net income (or minus the net loss) since the business began.

To determine: The owner’s equity for Ernest Consulting

Expert Solution & Answer

Explanation of Solution

The owner’s equity can be determined using the two methods as explained below:

Alternative 1:

Given in question:

$C a s h = $ 11, 360$

$A c c o u n t s r e c e i v a b l e = 14, 000$

$O f f i c e \sup p l i e s = 3, 250$

$L a n d = 46, 000$

$O f f i c e e q u i p m e n t = 18, 000$

$A c c o u n t s p a y a b l e = 8, 500$

$O w n e r' s e q u i t y = A s s e t s - L i a b i l i t i e s$

$\begin{array}{l} = C a s h + A c c o u n t s r e c e i v a b l e + O f f i c e \sup p l i e s + L a n d + O f f i c e e q u i p m e n t - A c c o u n t s p a y a b l e \\ = 11, 360 + 14, 000 + 3, 250 + 46, 000 + 18, 000 - 8, 500 \\ = $ 84, 110 \end{array}$

Alternative 2:

$\begin{array}{l} N e t i n c o m e (A s p e r E x e r c i s e 1 - 15) = $ 2, 410 \\ O w n e r' s i n v e s t m e n t = $ 84, 000 \\ O w n e r' s w i t h d r a w a l s = 2, 000 \\ O w n e r' s e q u i t y = O w n e r' s i n v e s t m e n t + N e t i n c o m e - O w n e r' s w i t h d r a w a l s \\ = 84, 000 + 2, 410 - 2, 000 \\ = $ 84, 410 \end{array}$

Answer 7

Chapter 1, Problem 16E

To determine

Concept Introduction:

Owner’s Equity - Owner’s equity is an important component of the balance sheet. Owner’s equity or capital represents the amount invested in the business minus the withdrawals made from the business plus the net income (or minus the net loss) since the business began.

To determine: The owner’s equity for Ernest Consulting

Answer 8

Expert Solution & Answer

Explanation of Solution

The owner’s equity can be determined using the two methods as explained below:

Alternative 1:

Given in question:

$C a s h = $ 11, 360$

$A c c o u n t s r e c e i v a b l e = 14, 000$

$O f f i c e \sup p l i e s = 3, 250$

$L a n d = 46, 000$

$O f f i c e e q u i p m e n t = 18, 000$

$A c c o u n t s p a y a b l e = 8, 500$

$O w n e r' s e q u i t y = A s s e t s - L i a b i l i t i e s$

$\begin{array}{l} = C a s h + A c c o u n t s r e c e i v a b l e + O f f i c e \sup p l i e s + L a n d + O f f i c e e q u i p m e n t - A c c o u n t s p a y a b l e \\ = 11, 360 + 14, 000 + 3, 250 + 46, 000 + 18, 000 - 8, 500 \\ = $ 84, 110 \end{array}$

Alternative 2:

$\begin{array}{l} N e t i n c o m e (A s p e r E x e r c i s e 1 - 15) = $ 2, 410 \\ O w n e r' s i n v e s t m e n t = $ 84, 000 \\ O w n e r' s w i t h d r a w a l s = 2, 000 \\ O w n e r' s e q u i t y = O w n e r' s i n v e s t m e n t + N e t i n c o m e - O w n e r' s w i t h d r a w a l s \\ = 84, 000 + 2, 410 - 2, 000 \\ = $ 84, 410 \end{array}$