Question

On June 30, 2015, Martin Co. has assets of $22,000 and owners' equity of $5,000. What is the total of its liabilities on that date?

Answer 1

Assets = Liabilities + Owner's Equity

$22,000 = ? + $5,000 Subtract the $5,000 from $22,000 and that gives you the liabilities.

($17,000)