Question

# Use T-accounts to record the transactions below, which occur on March 12, 2018, close the T-accounts,...

Use T-accounts to record the transactions below, which occur on March 12, 2018, close the T-accounts, and construct a balance sheet to answer the question.

1. Pay \$4,000 owed to a supplier 2. Issue \$90,000 in stock 3. Buy \$16,000 worth of manufacturing supplies on credit

What is the final amount in Total Equity?

Solution:

 Accounts Payable Particulars Debit Particulars Credit To Cash \$4,000.00 By Supplies \$16,000.00 Ending Balance \$12,000.00 Total \$16,000.00 Total \$16,000.00
 Common Stock Particulars Debit Particulars Credit Ending Balance \$90,000.00 By Cash \$90,000.00 Total \$90,000.00 Total \$90,000.00
 Supplies Particulars Debit Particulars Credit To Accounts payable \$16,000.00 Ending balance \$16,000.00 Total \$16,000.00 Total \$16,000.00
 Cash Particulars Debit Particulars Credit To Common Stock \$90,000.00 By Accounts payable \$4,000.00 Ending balance \$86,000.00 Total \$90,000.00 Total \$90,000.00
 Balance Sheet Liabilities Amount Assets Amount Accounts payble \$12,000.00 Cash \$86,000.00 Common Stock \$90,000.00 Supplies \$16,000.00 Total \$102,000.00 Total \$102,000.00

Final amount of equity = \$90,000

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