Question

Torche Corporation Balance Sheet As of January 24, 2018 (amounts in thousands)
Cash	14,700	Accounts Payable	2,400
Accounts Receivable	4,800	Debt	3,700
Inventory	3,800	Other Liabilities	5,000
Property Plant & Equipment	15,800	Total Liabilities	11,100
Other Assets	900	Paid-In Capital	6,000
		Retained Earnings	22,900
		Total Equity	28,900
Total Assets	40,000	Total Liabilities & Equity	40,000

Record the transactions in a journal, transfer the journal entries to T-accounts, compute closing amounts for the T-accounts, and construct a balance sheet to answer the question.

Jan 25. Receive payment of $12,000 owed by a customer
Jan 26. Buy $15,000 worth of manufacturing supplies on credit
Jan 27. Purchase equipment for $44,000 in cash
Jan 28. Issue $80,000 in stock
Jan 29. Pay $4,000 owed to a supplier

What is the final amount in Total Liabilities & Equity?

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

Answer 1

Journal Entries (amount in thosands) Date Account Title DR CR 25-Jan Cash 12 Account Receivable 12 (payment received ) 26-Jan Inventory 15 Account Payable 15 (supplies purchased) 27-Jan equipment 44 cash 44 (equipment purchased) 28-Jan cash 80 paid in capital 80 (stock issued) 29-Jan Account Payable 4 cash 4

Balance Sheet Asset Amount (in 000) Liabilities Amount(in 000) Cash 14744 Account Payable 2411 Account Receivable 4788 Debt 3700 Inventory 3815 Other liabilities 5000 Total liabilities 11111 Property , plant and equipmnet 15844 Paid in capital 6080 Other Asset 900 Retained Earning 22900 Total equity 28980 Total Assets 40091 Total equity and liabilities 40091