Question

Stuart Company

Balance Sheet

As of March 11, 2018

(amounts in thousands)

Cash 8,400 Accounts Payable 2,800

Accounts Receivable 4,700 Debt 3,400

Inventory 4,200 Other Liabilities 900

  Property, Plant, & Equipment 17,200 Total Liabilities 7,100

Other Assets 2,800 Paid-in Capital 6,700

Retained Earnings 23,500

Total Assets 37,300 Total Equity 30,200

Total Liabilities & Equity 37,300

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. Borrow $52,000 from a bank 2. Purchase equipment for $48,000 in cash 3. Issue $85,000 in stock What is the final amount in Total Assets? Please specify your answer in the same units as the balance sheet.

Answer 1

Bank Account - March 12, 2018
Debit	('000)	Credit	('000)
To Bank Loan	52
To Capital	85	By Balc/f	137
	137		137
Bank Loan Account - March 12, 2018
Debit	('000)	Credit	('000)
To Bal c/f	52	By Bank	52
	520		520
Cash Account - March 12, 2018
Debit	('000)	Credit	('000)
To Equipment	48	By Balance B/f	8400
To Bal c/f	8352
	8400		8400

Balance Sheet as of March 12, 2018
Liablities	('000)	Assets	('000)
Accounts Payable	2800	Bank	137
Debt	3400	Cash	8352
Other Liabilities	900	Accounts Receivable	4700
Bank Loan	52	Inventory	4200
Paid in Capital	6785	Property, Plant & Equipment	17,200
Retained Earnings	23500	Equipment	48
		Other Assets	2800
	37437		37437