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. Sell product for $30,000 in cash with historical cost of $24,000
Jan 26. Sell, deliver, and receive payment of $40,000 for service
Jan 27. Consume good or service and pay expense of $2,000

What is the final amount in Total Liabilities & Equity?

Answer 1

Journal entries with Amount in Thousands

Date	Account	Debit	Credit
Jan 25	Cash	30
	Sales Revenue		30
Jan 25	Cost of Goods Sold	24
	Inventory		24
Jan 26	Cash	40
	Service Revenue		40
Jan 27	Expense	2
	Cash		2

The T accounts will be prepared as under:

Cash Inventory Amount in$ 24 Date Debit Jan-24 Beg. Balance Jan-25 Sales Revenu Jan-25 Service Rever Total Amount in Date Credit Amount in $ Date Debit Amount in $ Date Credit Jan-24 Beg. Balance 3800 Jan-25 Cost of Goods Sold 9700 Jan-27 Operating Expenses 30 Ending Balance 9768 Ending Balance 3776 40 9770 Total 9770 Total 3800 Total 3800 Sales Revenue Service Revenue Amount in $ DateCredit Amount in $ 30 Amount in $ DateCredit Amount in $ Date Debit Date Debit Jan-25 Cash 30 30 Total Jan-25 Cash Ending Balan Ending Balance 40 Total Total 30 Total 40 Cost of Goods Sold Amount in $ DateCredit Operating Expenses Amount in $ Amount in $ DateCredit Amount in $ Date Debit Jan-25 Invento Date Debit Jan-27 Cash 24 2 Ending Balanace 24 Ending Balance 24 Total Total Total 2 Total 24

The Balance Sheet will appear as below:

Valley Technology
Balance Sheet
As of January 27, 2019
(amounts in thousands)
Cash	9,768	Accounts Payable	1,500
Accounts Receivable	4,500	Debt	2,900
Inventory	3,776	Other Liabilities	800
Property Plant & Equipment	16,400	Total Liabilities	5,200
Other Assets	1,700	Paid-In Capital	7,300
		Retained Earnings	23,644
		Total Equity	30,944
Total Assets	36,144	Total Liabilities & Equity	36,144

What is the final amount in Total Liabilities & Equity = $36144 (thousands) or $36144000