Example 41
the Following Information Applies to the Following Questions

Essay

Example 4.1
The following information applies to the following questions. The accountant for Big Stores has compiled the following information about the business and its accounts:
$$\begin{array} { l r l r } \text { Cash } & \$ 1000 & \text { Inventory } & \$ 10000 \\\text { Revenues } & 5000 & \text { Expenses } & 3000 \\\text { Accounts Payable } & 3000 & \text { Equipment } & 15000 \\\text { Wages Payable } & 2000 & \text { Notes payable } & 12000\end{array}$$
-Refer to Example 4.1. Using the accounting equation, what is the amount of owner's equity reported on Big Stores' balance sheet?