Question

Hopewell Corporation Balance Sheet As of January 3, 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 Transfer the journal entries to T-accounts for the transactions below, compute closing amounts for the T-accounts, and construct a final balance sheet to answer the question. Journal amounts in thousands Date Account and Explanation Debit Credit Jan 4 Inventory 15 Accounts Payable 15 Bought manufacturing supplies on credit Jan 5 Cash 48 Inventory 38 Retained Earnings 10 Sold and delivered product to customer Jan 6 Cash 13 Accounts Receivable 13 Received customer payment Jan 7 Cash 70 Paid-In Capital 70 Issued stock

Answer 1

Inventory
Jan 3,2019	Opening Balance	$5,200	Jan 5,2019	By cash	$38
Jan 4,2019	To accounts payable	$15
				By closing Balance	$5,177
Cash
Jan 3,2019	Opening Balance	$12,500	Jan 9,2019	By Accounts payable	$5
Jan 5,2019	To inventory	$38	Jan 10,2019	By Propert Plant & equipment	$42
Jan 5,2019	To Retained earnings	$10
Jan 6,2019	To accounts receivable	$13
Jan 7,2019	To Paid - in capital	$70
Jan 8,2019	To Debt	$65
				By closing Balance	$12,649
Accounts Payable
Jan 9,2019	To cash	$5	Jan 3,2019	Opening Balance	$2,400
			Jan 4,2019	By inventory	$15
	To Closing Balance	$2,410
Retained earnings
			Jan 3,2019	Opening Balance	$23,900
			Jan 5,2019	By cash	$10
	To Closing Balance	$23,910
Accounts receivable
Jan 3,2019	Opening Balance	$3,600	Jan 6,2019	By cash	$13
				By closing Balance	$3,587
Paid-in Capital
			Jan 3,2019	Opening Balance	$5,600
			Jan 7,2019	By cash	$70
	To Closing Balance	$5,670
Debt
			Jan 3,2019	Opening Balance	$3,700
			Jan 8,2019	By cash	$65
	To Closing Balance	$3,765
Property Plant & equipment
Jan 3,2019	Opening Balance	$16,700
Jan 10,2019	To cash	$42
				By closing Balance	$16,742
	Balance Sheet
	Cash	$12,649	Accounts Payable	$2,410
	Accounts Receivable	$3,587	Debt	$3,765
	Inventory	$5,177	Other Liabilities	$3,000
	Property Plant & equipment	$16,742	Total Liabilities	$9,175
	Other Asset	$600	Paid in capital	$5,670
			Retained Earnings	$23,910
			Total Equity	$29,580
	Total Asset	$38,755	Total Liabilities	$38,755
			& Equity