Annie's Attic Has the Following Account Balances for the Dates

Essay

Annie's Attic has the following account balances for the dates given:
$\begin{array}{|l|r|r|}\hline & \text { September } 1 & \text { September 30 } \\\hline \text { Cash } & \$ 40,000 & 60,000 \\\hline \text { Accounts Receivable } & 40,000 & 38,000 \\\hline \text { Accounts Payable } & 6,000 & ? \\\hline\end{array}$ Its net income for September 1 through September 30 was $20,000 and there were no investments by the owners or dividends paid. Determine the equity at both September 1 and September 30.