Question

Nippon Technology Balance Sheet As of March 11, 2019 (amounts in thousands)
Cash	13,700	Accounts Payable	2,000
Accounts Receivable	3,200	Debt	3,600
Inventory	5,100	Other Liabilities	900
Property Plant & Equipment	15,400	Total Liabilities	6,500
Other Assets	800	Paid-In Capital	7,200
		Retained Earnings	24,500
		Total Equity	31,700
Total Assets	38,200	Total Liabilities & Equity	38,200

Use T-accounts to record the transactions below, which occur on March 12, 2019, close the T-accounts, and construct a balance sheet to answer the question.

1. Receive payment of $12,000 owed by a customer
2. Purchase equipment for $45,000 in cash
3. Issue $85,000 in stock
4. Borrow $67,000 from a bank
5. Buy $17,000 worth of manufacturing supplies on credit

What is the final amount in Total Liabilities & Equity?

Please specify your answer in the same units as the balance sheet.

Answer 1

Final amount in Total Liabilities & Equity = Total Liabilities & Equity + Stock issued + Borrowing from bank + Manufacturing supplies purchased on credit

= 38,200 + 85 + 67 + 17

= 38,369

Equipment purchased for cash will not affect total liabilities because cash balance we get reduced in the equipment balance will be increased.

Receipt of amount owed by the customer will not affect total liabilities because cash balance will be increased in the account receivable balance gets decreased.