Basic accounting equation (Learning Objective 5 ) 5–10 min.

Ellen Beach owns Ellen’s Lawncare Service. The business has cash of $13,000 and equipment that costs $35,000. Debts of the business include accounts payable of

$9,000 and a $5,000 note payable. Determine the amount of stockholders’ equity Ellen has in the business. Write the accounting equation for Ellen’s Lawncare Service.

AppendixLO1