To determine XYZ Company's owner's equity, we need to follow a series of steps to calculate total assets, total liabilities, and finally, the owner's equity using these values.
### Step 1: Calculate Total Assets
Total assets are the sum of all the asset items listed on the balance sheet. Here, we have the following asset items:
- Cash: \[tex]$45,000
- Inventory: \$[/tex]41,000
- Property: \[tex]$134,000
Adding these values together, we get:
\[ \text{Total Assets} = 45,000 + 41,000 + 134,000 \]
\[ \text{Total Assets} = 220,000 \]
### Step 2: Calculate Total Liabilities
Total liabilities are the sum of all the liability items listed on the balance sheet. Here, we have the following liability items:
- Notes: \$[/tex]55,000
- Wages: \[tex]$56,000
Adding these values together, we get:
\[ \text{Total Liabilities} = 55,000 + 56,000 \]
\[ \text{Total Liabilities} = 111,000 \]
### Step 3: Calculate Owner's Equity
Owner's equity can be calculated using the accounting equation:
\[ \text{Owner's Equity} = \text{Total Assets} - \text{Total Liabilities} \]
Using our calculated values, we get:
\[ \text{Owner's Equity} = 220,000 - 111,000 \]
\[ \text{Owner's Equity} = 109,000 \]
### Conclusion
Therefore, XYZ Company's owner's equity is \$[/tex]109,000.
