Question

Valley Technology
Balance Sheet
As of January 24, 2019
(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	1,700	Paid-In Capital	7,300
		Retained Earnings	23,600
		Total Equity	30,900
Total Assets	36,100	Total Liabilities & Equity	36,100
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 the question.
Jan 25. Buy $15,000 worth of manufacturing supplies on credit
Jan 26. Issue $85,000 in stock
Jan 27. Borrow $63,000 from a bank
Jan 28. Pay $5,000 owed to a supplier
Jan 29. Receive payment of $12,000 owed by a customer
What is the final amount in Total Liabilities?
Please specify your answer in the same units as the balance sheet.

Answer 1

Valley Technology

General Journal

For the Month of January,2019

Date	Accounts Title	Amount	Amount
January 25	Supplies	$15,000
	Accounts Payable		$15,000
January 26	Cash	$85,000
	Common Stock		$85,000
January 27	Cash	$63,000
	Bank Loan		$63,000
January 28	Accounts Payable	$5,000
	Cash		$5,000
January 29	Cash	$12,000
	Accounts Receivable		$12,000

Posting the Journal Entries to T-ACCOUNTS:-

Cash

Date	Accounts	Amount	Date	Accounts	Amount
24 January	Opening Balance	$9,700,000	28 January	Accounts Payable	$5,000
26 January	Common Stock	85,000	31 January	Balance	$9,855,000
27 January	Bank Loan	63,000
29 January	Accounts Receivable	12,000
	Total	$9,860,000		Total	$9,860,000
31 January	Closing Balance	$9,855,000

Accounts Payable

28 January	Cash	$5,000	24 January	Opening Balance	$1,500,000
31 January	Balance	1,510,000	25 January	Supplies	15,000
	Total	$1,515,000		Total	$1,515,000
			31 January	Closing Balance	$1,510,000

Accounts Receivable

24 January	Opening Balance	$4,500,000	29 January	Cash	$12,000
			31 January	Balance	4,488,000
	Total	$4,500,000		Total	$4,500,000
31 January	Closing Balance	$4,488,000

Common Stock

31 January	Balance	$85,000	26 January	Cash	$85,000
	Total	$85,000		Total	$85,000
			31 January	Closing Balance	$85,000

Bank Loan

31 January	Balance	$63,000	27 January	Cash	$63,000
	Total	$63,000		Total	$63,000
			31 January	Closing Balance	$63,000

Supplies

25 January	Accounts Payable	$15,000	31 January	Balance	$15,000
	Total	$15,000		Total	$15,000
31 January	Closing Balance	$15,000

Valley Technology

Balance Sheet (amounts in Thousands)

As on January 31,2019

Accounts	Amount	Accounts	Amount
Assets:-		Liabilities and Stockholders Equity:-
Cash	$9,855	Liabilities:-
Accounts Receivable	4,488	Accounts Payable	$1,510
Inventory	3,800	Debt	2,900
Supplies	15	Bank Loan	63
Property, Plant & Equipment	16,400	Other Liabilities	800
Other Assets	1,700	Total Liabilities	$5,273
		Stockholders Equity:-
		Common Stock	85
		Paid-in Capital	7,300
		Retained Earnings	23,600
		Total Stockholders Equity	$30,985
Total Assets	$36,258	Total Liabilities and Stockholders Equity	$36,258