Questions: Susan is the owner of a company in which she originally Invested 10,500. On her most recent balance sheet her liabilities total 3,000 and her assets total 19,000. Which of the following is the correct total of Susan's equity? 7,500 22,000 16,000 13,500

Susan is the owner of a company in which she originally Invested 10,500. On her most recent balance sheet her liabilities total 3,000 and her assets total 19,000.

Which of the following is the correct total of Susan's equity?
7,500
22,000
16,000
13,500

Transcript text: Susan is the owner of a company in which she originally Invested $\$ 10,500$. On her most recent balance sheer her llabilities total $\$ 3,000$ and her assets total $\$ 19,000$. Which of the following is the correct total of Susan's equily? $\$ 7,500$ $\$ 22,000$ $\$ 16,000$ $\$ 13,500$

Solution

Solution Steps

To find Susan's equity, we can use the basic accounting equation:

\[ \text{Equity} = \text{Assets} - \text{Liabilities} \]

Given the assets and liabilities, we can plug in the values to find the equity.

Step 1: Identify Given Values

We are given the following values:

Assets: \( \$19,000 \)
Liabilities: \( \$3,000 \)

Step 2: Apply the Accounting Equation

To find the equity, we use the accounting equation: \[ \text{Equity} = \text{Assets} - \text{Liabilities} \]

Step 3: Substitute the Given Values

Substitute the given values into the equation: \[ \text{Equity} = 19000 - 3000 \]

Step 4: Calculate the Equity

Perform the subtraction: \[ \text{Equity} = 16000 \]

Final Answer

\(\boxed{16000}\)

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