Below are SOME of the accounts for Linh Do Accounting Firm prepared at the year ended 30th June 2023 . Calculate the Total Equity as at 30th June 2023.

Accounts receivable 6,108
Contributed Capital 22,677
Sales Revenue 57,272
Equipment 8,913
Unearned Sales Revenue 8,916
Dividends 9,502
Cost of sales 6,506
Accounts payable 5,017
Salary payable 3,541
Operating expenses 5,071
Retained earnings, 30 June 2022 4,709
Retained earnings, 30 June 2023 10,992
Bank loan 6,336

Question

Below are SOME of the accounts for Linh Do Accounting Firm prepared at the year ended 30th June 2023 . Calculate the Total Equity as at 30th June 2023.

Accounts receivable	6,108
Contributed Capital	22,677
Sales Revenue	57,272
Equipment	8,913
Unearned Sales Revenue	8,916
Dividends	9,502
Cost of sales	6,506
Accounts payable	5,017
Salary payable	3,541
Operating expenses	5,071
Retained earnings, 30 June 2022	4,709
Retained earnings, 30 June 2023	10,992
Bank loan	6,336

BlackTom AI · Accepted Answer

First, restate the key values that matter for Total Equity. We have Contributed Capital = 22,677 and Retained earnings as at 30 June 2023 = 10,992. Other items listed include revenue and expense accounts, dividends, various liabilities, and assets, but equity is specifically the residual interest of owners, which is the sum of contributed capital and retained earnings (assuming no additional owner investments or drawings beyond what is given).

Next, consider the effect of dividends. Dividends reduce retained earnings when they are paid, but the figure labeled "Retained earnings, 30 June 2023" already reflects that reduction. Therefore, you should not add or subtract dividends separately from retained earnings here; use the 2023 retained earnings figure directly in the equity calculation.

Now perform the calculation by combining the components of equity:
- Contributed capital: 22,677
- Retained earnings (30 June 2023): 10,992

Total Equity = Contributed capital + Retained earnings = 22,677 + 10,992

Carry out the addition step by step: 22,677 plus 10,000 equals 32,677; adding the remaining 992 gives 33,669.

To confirm consistency, note that other presented numbers (assets, revenues, expenses, other liabilities) are useful for a broader view of the business’s financial position, but they do not alter the owners’ equity calculation when the problem provides explicit equity components.

Therefore, the calculated Total Equity at 30 June 2023 corresponds to 33,669. The line of reasoning hinges on using contributed capital and the ending retained earnings, and recognizing that dividends are already reflected in the ending retained earnings figure.

BACC012 Week 3: Practice Quiz

View Explanation

Log in for full answers

Similar Questions

A company has assets of $544,485, liabilities of $314,694 and retained earnings of $58,369. How much is the total equity?

In a consumer society, many adults channel creativity into buying things

Economic stress and unpredictable times have resulted in a booming industry for self-help products

People born without creativity never can develop it

A product has a selling price of $20, a contribution margin ratio of 40% and fixed cost of $120,000. To make a profit of $30,000. The number of units that must be sold is: Type the number without $ and a comma. Eg: 20000

Which of the following statement regarding cost is correct:

Under the assumptions used in cost-volume-profit analysis, as the activity increases:

More Practical Tools for Students Powered by AI Study Helper

Homework AI Solver

Stylized AI Paper Writer

Plagiarism Checker Assistant

Citation AI Academic Writing Tool

In-Class Translation Assistant

AI Note Generator

AI Quiz Answers

Past Exam Questions from University Test Bank

Smart Practice Assistant

Adaptive Practice

Making Your Study Simpler