Ming An owns Mings Lawncare Service. The business has cash of $3,000 and equipment that costs $12,000.

Question:

Ming An owns Ming’s Lawncare Service. The business has cash of $3,000 and equipment that costs $12,000. Debts of the business include accounts payable of $6,000 and a $5,000 note payable. Determine the amount of shareholders’ equity Ming has in the business. Write the accounting equation for Ming’s Lawncare Service.

Accounts Payable
Accounts payable (AP) are bills to be paid as part of the normal course of business.This is a standard accounting term, one of the most common liabilities, which normally appears in the balance sheet listing of liabilities. Businesses receive...