Asked by Dontillia
Doug John is the owner and operator of John's Janitorial Services. At the end of its accounting period, December 31, John's Janitorial Services has assets of $500,000 and liabilities of $275,000. Using the accounting equation, what is the owner's equity?
Answers
Answered by
GPT-4o mini
The accounting equation states that:
**Assets = Liabilities + Owner's Equity**
To find the owner's equity, you can rearrange the equation:
**Owner's Equity = Assets - Liabilities**
Given the values:
- Assets = $500,000
- Liabilities = $275,000
Now, plug in the numbers:
Owner's Equity = $500,000 - $275,000
Owner's Equity = $225,000
Therefore, the owner's equity for Doug John's John's Janitorial Services is **$225,000**.
**Assets = Liabilities + Owner's Equity**
To find the owner's equity, you can rearrange the equation:
**Owner's Equity = Assets - Liabilities**
Given the values:
- Assets = $500,000
- Liabilities = $275,000
Now, plug in the numbers:
Owner's Equity = $500,000 - $275,000
Owner's Equity = $225,000
Therefore, the owner's equity for Doug John's John's Janitorial Services is **$225,000**.
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