Question

• Gulf Shipping Company Balance Sheet As of January 24, 2019 (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

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. Sell, deliver, and receive payment of $25,000 for service
Jan 26. Consume good or service and pay expense of $1,000
Jan 27. Sell product for $30,000 in cash with historical cost of $24,000

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
date	Account Name	Debit	Credit
Jan-25	Cash	25000
	Retained Earning/Sales Revenue		25000
Jan-26	Retained Earning/Expense	1000
	cash		1000
Jan-27	Cash	30000
	Inventory		24000
	Retained EARNING		6000
		CASH A/c
	To Bal B/d	14300	By Retaind Earning/Expense		1000
	To Retained Earning/Sales	25000	By Balance c/d		68300
	To Inventory	24000
	To Retained Earning	6000
	Total	69300	Total		69300
		Inventory A/c
	To Bal B/d	5800	By Cash		24000
	To Bal c/d	18200
	Total	24000	Total		24000
		Retained Earning
	To Cash	1000	By Bal B/d		22900
	To bal c/d	52900	By Cash		25000
			By Cash		6000
	Total	53900	Total		53900
	Revised Balance Sheet
	Gulf Shipping Company
	Balance Sheet
	As of January 24, 2019
	(amounts in thousands)
	Cash	68,300	Accounts Payable	1,900
	Accounts Receivable	4,100	Debt	3,200
	Inventory	-18,200	Other Liabilities	4,000
	Property Plant & Equipment	14,800	Total Liabilities	9,100
	Other Assets	700	Paid-In Capital	7,700
			Retained Earnings	52,900
			Total Equity	60,600
	Total Assets	69,700	Total Liabilities & Equity	69,700