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    Assets & Liabilities: How much was owner's equity on January 31?

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    On January 31, an entity's balance sheet showed net assets of $1085 and liabilities of $225. How much was owner's equity on January 31?

    Assets = liabilities + owner equity

    $1085 = $225 + ?

    $1085 - $225 = $860

    owner equity = $860 Is this right?

    In a different problem assets were listed as "total" assets and gave liabilities and asked to calcualte OE. I did it the same way ...... But now I am not sure if it is supposed to be done differently since it says "net assets" in this problem . The more I read the chapter, the more confused I get.

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    Solution Preview

    You are correct. The fact that in the other problem says Total Assets and this one Net Assets is just to confuse you, but thet essentially mean the ...

    Solution Summary

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