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 31 was $20,000 and there were no investments by the owners or dividends paid. Determine the equity at both September 1 and September 30.