From this list, calculate current assets and owner\'s equity. The items listed a

Question

From this list, calculate current assets and owner's equity. The items listed are owned/owed by the company and the value or amount is listed: Sales = $120,000 Delivery Truck = $20,000 Cash in the Bank = $50,000 Accounts Payable = $40,000 Note Receivable = $10,000 Prepaid Rent = $10,000 Computer Hardware = $10,000 Mortgage = $40,000 The Current Assets = __________ and the Owner's Equity = _________________. 1)$190,000 & 140,000 2)$180,000 & 140,000 3)$80,000 & 20,000 4)$70,000 & 20,000 5)none of the above

Explanation / Answer

current assets = 120 ,000+50,000(cash) + 10,000(Note Receivable) +10,000(prepaid rent) =$190,000 (answer) Total assets = $190,000 owner 's equity =190,000 +10,000-40,000 -20,000 = $ 140,000 1) $190,000 & $140,000 (answer)

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