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. 1. Consume good or service and pay expense of $2,000 2. Sell product for $40,000 in cash with historical cost of $32,000 3. Sell, deliver, and receive payment of $25,000 for service What is the final amount in Total Liabilities & Equity? Note: Transaction amounts are provided in dollars but the balance sheet units are thousands of dollars. Please specify your answer in the same units as the balance sheet (i.e., enter the number from your updated balance sheet).

Answer 1

Preperation of T - Accounts for the transaction

All Transactions are recorded in thousands of dollars

1) Consumption Account

Particulars	Amount	Particulars	Amount
Cash A/c	2	Profit and Loss A/c	2
Total	2	Total	2

2) Sales Account

Particulars	Amount	Particulars	Amount
Profit and Loss A/c	40	Cash A/c	40
Total	40	Total	40

3) Service Account

Particulars	Amount	Particulars	Amount
Profit and Loss A/c	25	Cash A/c	25
Total	25	Total	25

4) Cash Account.

Particulars	Amount	Particulars	Amount
Opening Cash	8400	Consumption A/c	2
Sales A/c	40
Service A/c	25	Balance C/f	8463
Total	8465	Total	8465

5)Profit and Loss Account

Particulars	Amount	Particulars	Amount
Cost of Goods Sold	32	Sales	40
Consumption	2	Service	25
Retained Earnings	31
Total	65	Total	65

6) Balance Shee

Stuart Company Balance Sheet As of March 12, 2020 (Amounts in thousands)
Cash	8463	Account payable	2800
Accounts Receivable	4700	Debt	3400
Inventory	4168	Other Liabilities	900
Property Plant and Equipment	17200	Total Liabilities	7100
Other Assets	2800	Paid In Capital	6700
		Retained Earnings	23531
		Total Equity	30231
Total Assets	37331	Total Liabilities and Equity	37331