Cornelia's Closet Has the Following Account Balances for the Dates

Essay

Cornelia's Closet has the following account balances for the dates given:
$\begin{array}{llr}&\underline{\text { October }} 1 & \underline{\text { October } 31}\\ \text { Cash.} &\$40,000&60,000\\ \text {Accounts Receivable } &40,000&38,000\\ \text {Accounts payable } &6,000&?\end{array}$

Also, its net income, for October 1 through October 31 was $20,000 and there were no investments or withdrawals by the owner. Determine the equity at both October 1 and October 31.