Accounts for Minion Ltd are as follows: Cash $8,000 Accounts payable 15,000 Wages payable 2,000 Inventory 8,500 Accounts receivable 4,200 Equipment 14,500 Loan payable 15,000 Motor vehicles 22,000 The amount for Equity is: a

Accounting Dec 16, 2020

Accounts for Minion Ltd are as follows:

Cash	$8,000
Accounts payable	15,000
Wages payable	2,000
Inventory	8,500
Accounts receivable	4,200
Equipment	14,500
Loan payable	15,000
Motor vehicles	22,000

The amount for Equity is:

a. $27,000.

b. $57,200.

c. $25,200.

d. $32,000.

Expert Solution

Answer : c. $25,200.

The amount for Equity is computed as follows:

Total assets:
Cash	$8,000
Inventory	8,500
Accounts receivable	4,200
Equipment	14,500
Motor vehicles	22,000
Total assets	57,200

Less: Total liabilities
Accounts payable	15,000
Wages payable	2,000
Loan payable	15,000
Total liabilities	32,000

Equity	$25,200

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