Decision Point: The Balance Sheet: Owners' Equity You tell Alex that you're almost done with the balance sheet. Because his restaurant is a sole proprietorship, there's only one section that still needs to be completed: owners' equity. He asks what that is and how you calculate it. How should you respond to Alex? Select an option from the choices below and click Submit. Owners' equity is the total assets of the restaurant plus paid-in capital (how much Alex put into the restaurant to get it started), less the liabilities. It's calculated as: Assets + Paid-in Capital - Liabilities = Owners' Equity Owners' equity on the balance sheet is the difference between the assets and liabilities. It's calculated as: Assets = Liabilities + Owners' Equity Owners' equity is the total assets of the restaurant, plus its total liabilities. It's calculated as: Assets + Liabilities = Owners' Equity