Short Questions Kevin Foster begins business by investing 2

Short Questions . Kevin Foster begins business by investing $20,000 in cash, and $5,000 worth of supplies. What is the equity of the company? an acceptable format. quiment valued at $60 t Quipment valued at $60,000, in 2. If Kevin Foster included $30,000 in notes payable (treated as part of Wabilities), what is includ the amount of the owner\'s equity account? Incorporate the information from the previous question (Question 1, above).

Solution

Particular Amount (Dr) Amount (Cr) Cash $         20,000.00 Equipment $         60,000.00 Supplies $           5,000.00      To Common Stock $                                          85,000.00 (Being amount invested by Kevin Foster) Equity of the Company=$85000 Particular Amount (Dr) Amount (Cr) Cash $         20,000.00 Equipment $         60,000.00 Supplies $           5,000.00       To Note Payable $                                          30,000.00      To Common Stock $                                          55,000.00 (Being amount invested by Kevin Foster) Equity of the Company=$55000