Acme Company Balance Sheet As of January 5, 2019 (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 Equity | 30,200 | ||
Total Assets | 37,300 | Total Liabilities & Equity | 37,300 |
Update the balance sheet above to reflect the transactions below, which occur on January 6, 2019
1. Sell product for $25,000 with historical cost of $20,000
What is the final amount in Retained Earnings?
Please specify your answer in the same units as the balance sheet.
Acme Company Balance Sheet As of January 6, 2019 (amounts in thousands) |
|||
---|---|---|---|
Cash | 8,400 | Accounts Payable | 2,800 |
Accounts Receivable | 4,725 | Debt | 3,400 |
Inventory | 4,180 | Other Liabilities | 900 |
Property Plant & Equipment | 17,200 | Total Liabilities | 7,100 |
Other Assets | 2,800 | Paid-In Capital | 6,700 |
Retained Earnings | 23,505 | ||
Total Equity | 30,205 | ||
Total Assets | 37,305 | Total Liabilities & Equity | 37,305 |
Update the balan
Solution :
Journal entries -
Date | accounts and explanation | Debit | Credit |
Jan 6, 2019 | Accounts receivable | $25000 | |
Sales | $25000 | ||
(To record sale of product) | |||
" | Cost of goods sold | $20000 | |
Inventory | $20000 | ||
(To record cost of sale) | |||
" | Sales | $25000 | |
Income summary | $25000 | ||
(To close sales to income summary) | |||
" | Income summary | $20000 | |
Cost of goods sold | $20000 | ||
(To close cost of goods sold to income summary) | |||
" | Income summary | $5000 | |
Retained earnings | $5000 | ||
(To transfer balance in income summary to retained earnings) |
Income statement -
Acme Company | |
Income statement | |
Sales | $25000 |
(-) cost of goods sold | ($20000) |
Gross profit | $5000 |
(-) selling and administrative expenses | ($0) |
Net profit | $5000 |
Statement of retained earnings -
Acme Company | |
Statement of retained earnings | |
As of January 6, 2019 | |
Opening retained earnings | $23500 |
(+) net profit | $5000 |
Closing retained earnings | $28500 |
Note: As there is no specific information regarding the payment for sale, it is assumed that the sale is on account. Therefore, accounts receivable is increased instead of cash.
Acme Company Balance Sheet As of January 5, 2019 (amounts in thousands) Cash 8,400 Accounts Payable...
Acme Company Balance Sheet As of January 5, 2019 (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 Equity 30,200 Total Assets 37,300 Total Liabilities & Equity 37,300 Update the balance sheet above to reflect the transactions below, which occur on January 6, 2019 1. Sell product for $25,000 with historical cost of...
Acme Company Balance Sheet As of January 5, 2019 (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 Equity 30,200 Total Assets 37,300 Total Liabilities & Equity 37,300 Update the balance sheet above to reflect the transactions below, which occur on January 6, 2019 1. Borrow $52,000 from a bank 2. Purchase equipment...
Stuart Company Balance Sheet As of January 24, 2019 (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 Equity 30,200 Total Assets 37,300 Total Liabilities & Equity 37,300 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...
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....
Cash 2,800 Accounts Receivable 3,400 Stuart Company Balance Sheet As of March 11, 2020 (amounts in thousands) 8,400 Accounts Payable 4,700 Debt 4,200 Other Liabilities 17,200 Total Liabilities 2,800 Paid-In Capital Retained Earnings Total Equity 37,300 Total Liabilities & Equity 900 Inventory Property Plant & Equipment 7,100 Other Assets 6,700 23,500 30,200 Total Assets 37,300 Use T-accounts to record the transactions below, which occur on March 12, 2020, close the T-accounts, and construct a balance sheet to answer the question....
Acme Company Balance Sheet As of January 5, 2019 (amounts in thousands) Cash 9,900 Accounts Payable 2,700 Accounts Receivable 4,500 Debt 3,500 Inventory 3,800 Other Liabilities 1,000 Property Plant & Equipment 16,800 Total Liabilities 7,200 Other Assets 1,600 Paid-In Capital 8,000 Retained Earnings 21,400 Total Equity 29,400 Total Assets 36,600 Total Liabilities & Equity 36,600 Update the balance sheet above to reflect the transactions below, which occur on January 6, 2019 1. Sell product for $35,000 with historical cost of...
Acme Company Balance Sheet As of January 5, 2019 (amounts in thousands) Cash 13,700 Accounts Payable 2,000 Accounts Receivable 3,200 Debt 3,600 Inventory 5,100 Other Liabilities 900 Property Plant & Equipment 15,400 Total Liabilities 6,500 Other Assets 800 Paid-In Capital 7,200 Retained Earnings 24,500 Total Equity 31,700 Total Assets 38,200 Total Liabilities & Equity 38,200 Update the balance sheet above to reflect the transactions below, which occur on January 6, 2019 1. Sell product for $40,000 with historical cost of...
Acme Company Balance Sheet As of January 5, 2019 (amounts in thousands) Cash 13,700 Accounts Payable 2,000 Accounts Receivable 3,200 Debt 3,600 Inventory 5,100 Other Liabilities 900 Property Plant & Equipment 15,400 Total Liabilities 6,500 Other Assets 800 Paid-In Capital 7,200 Retained Earnings 24,500 Total Equity 31,700 Total Assets 38,200 Total Liabilities & Equity 38,200 Update the balance sheet above to reflect the transactions below, which occur on January 6, 2019 1. Sell product for $40,000 with historical cost of...
Acme Company Balance Sheet As of January 5, 2019 (amounts in thousands) Cash 9,900 Accounts Payable 2,700 Accounts Receivable 4,500 Debt 3,500 Inventory 3,800 Other Liabilities 1,000 Property Plant & Equipment 16,800 Total Liabilities 7,200 Other Assets 1,600 Paid-In Capital 8,000 Retained Earnings 21,400 Total Equity 29,400 Total Assets 36,600 Total Liabilities & Equity 36,600 Update the balance sheet above to reflect the transactions below, which occur on January 6, 2019 1. Sell product for $35,000 with historical cost of...
Acme Company Balance Sheet As of January 5, 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 Update the balance sheet above to reflect the transactions below, which occur on January 6, 2019 1. Sell product for $20,000 with historical cost of...