Question

Acme Company Balance Sheet As of January 5, 2019 (amounts in thousands)
Cash	12,500	Accounts Payable	2,400
Accounts Receivable	3,600	Debt	3,700
Inventory	5,200	Other Liabilities	3,000
Property Plant & Equipment	16,700	Total Liabilities	9,100
Other Assets	600	Paid-In Capital	5,600
		Retained Earnings	23,900
		Total Equity	29,500
Total Assets	38,600	Total Liabilities & Equity	38,600

Update the balance sheet above to reflect the transactions below, which occur on January 6, 2019

1. Buy $15,000 worth of manufacturing supplies on credit
2. Purchase equipment for $48,000 in cash

What is the final amount in Cash?

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

Answer 1

Balance is a part of company's financial statement. Balance is sheet is prepared for a particular day rather than a period.

we would first journalise the entry for an easy understanding

Date	Account	Debit (In thousands)	Credit (In thousands)
06.01.2019	Supplies	$15
	Account payable		$15
	(As supplies are bought on credit we will credit account payable) No cash will be affected
06.01.2019	Equipment	$48
	Cash		$48
	(As equipment is bought for cash we will credit cash and debit equipment)

Final amount of cash = $12,500-$48

=$12,452

Balance sheet as on 06 January 2019

Cash	$12,452	Accounts payable [$2,400+$15]	$2,415
Account receivable	$3,600	Debt	$3,700
Inventory	$5,200	Other liabilities	$3,000
Property plant and equipment [$16,700+$48 purchased]	$16,748	Total liabilities	$9,115 ($2,415+3,700+3,000]
Supplies	$15	Paid in capital	$5,600
Other assets	$600	Retained earnings	$23,900
		Total equity	$29,500
Total	$38,615	Total liabilities and shareholder's equity	$38,615[$9,115+29,500]