1. Kevin Foster begins business by investing $20,000 in cash, equipment valued at $60,000, and $5000 worth of supplies. What is the equity of the company? Show all workings in an acceptable format.
2. If Kevin Foster included $30,000 in notes payable (treated as part of liabilities), what is the amount of the owner's equity account? Incorporate the information from the previous question (Question 1, above)