Question

Gulf Shipping Company Balance Sheet As of March 11, 2018 (amounts in thousands)
Cash	14,300	Accounts Payable	1,900
Accounts Receivable	4,100	Debt	3,200
Inventory	5,800	Other Liabilities	4,000
Property Plant & Equipment	14,800	Total Liabilities	9,100
Other Assets	700	Paid-In Capital	7,700
		Retained Earnings	22,900
		Total Equity	30,600
Total Assets	39,700	Total Liabilities & Equity	39,700

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. Purchase equipment for $50,000 in cash
2. Borrow $67,000 from a bank
3. Issue $80,000 in stock

What is the final amount in Total Equity?

Please specify your answer in the same units as the balance sheet.

Answer 1

Property plant and equipment

Dealscription	debit	description	credit
Opening	14800
Purchase of plant	50	closing	14850
Total	14850	total	14850

Debt

Description	debit	description	Credit
		Opening	3200
Closing	3267	Loan taken	67
Total	3267	total	3267

Share capital

Description	debit	description	credit
		Opening	7700
Closing	7780	Fresh issue	80
Total	7780	Total	7780

Cash

Description	debit	description	Credit
Opening	14300	plant purchase	50
Loan	67
Share	80	closing	14397
Total	14447	total	14447

Balance sheet

Cash	14397	Accounts payable	1900
Accounts receivable	4100	debt	3267
Inventory	5800	other liability	4000
Property plants and equipment	14850	total liability	9167
Other asset	700	Paid in capital	7780
		Retinee earnings	22900
		Total equity	30680
Total assets	39847	Total liabilities and equity	39847