Question

Valley Technology Balance Sheet As of March 11, 2020 (amounts in thousands) Cash 9,700 Accounts Payable 1,500 Accounts Receivable 4,500 Debt 2,900 Inventory 3,800 Other Liabilities 800 Property Plant & Equipment 16,400 Total Liabilities 5,200 Other Assets 7,300 23,600 1,700 Paid-In Capital Retained Earnings Total Equity 36,100 Total Liabilities & Equity 30,900 36,100 Total Assets 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. Buy $15,000 worth of manufacturing supplies on credit 2. Issue $85,000 in stock 3. Borrow $63,000 from a bank 4. Pay $5,000 owed to a supplier 5. Receive payment of $12,000 owed by a customer What is the final amount in Total Liabilities? 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

Journal Entry (*amount in thousands)

Transaction	Particulars	Debit($)	Credit($)
1	Supplies	15
	To Accounts payable		15
2	Cash	85
	To common stock		85
3	Cash	63
	To Debt		63
4	Accounts payable	5
	To cash		5
5	Cash	12
	To Accounts receivable		12

Cash
Beg bal	$9700	4	$5
2	$85
3	$63
5	$12	End bal	$9855

Common stock
End bal	$7385	Beg bal	$7300
		2	$85

Accounts receivable
Beg bal	$4500	5	$12
		End bal	$4488

Debt
End bal	$2963	Beg bal	$2900
		3	$63

Supplies
1	$15
		End bal	$15

Accounts payable
4	$5	Beg bal	$1500
End bal	$1510	1	$15

                                                    Balance sheet

cash	$9855	Accounts payable	$1510
Accounts receivable	$4488	Debt	$2963
Inventory	$3800	Other liabilities	$800
Property plant and equipment	$16400	Total liabilities	$5273
Other assets	$1700	common stock	$7385
Supplies	$15	Retained earnings	$23600
		Total equity	$30985
Total asset	$36258	Total liabilities and equity	$36258

Therefore, Total liabilities = $5273