Question

The total assets of Berber Company are $190,000 and its owner's equity is $89,000. What is the amount of its total liabilities?

Answer 1

$101,000

Step-by-step explanation:

As per the accounting equation, assets are equal to liabilities plus equity.

I.e.,

Assets = Liabilities + Equity

For Berber Company, Assets are $190,000: liabilities = $89,000

Therefore,

$190,000 = $89,000 + Equity

Equity = $190,000 -$89,000

Equity = $101,000