Question

Torche Corporation Balance Sheet As of March 11, 2018 (amounts in thousands) Cash 14,700 Accounts Payable 2,400 3,700 5,000 11,100 6,000 22,900 28,900 40,000 Accounts Receivable 4,800 Debt Inventory Property Plant & Equipment Other Assets 3,800 Other Liabilities 15,800 Total Liabilities 900 Paid-In Capital Retained Earnings Total Equity Total Assets 40,000 Total Liabilities & Equity Use T-accounts to record the transactions below, which occur on March 12, 2018, close the T-accounts, and construct a balance sheet to answer the question 1. Receive payment of $12,000 owed by a customer 2. Buy $15,000 worth of manufacturing supplies on credit 3. Purchase equipment for $44,000 in cash What is the final amount in Total Liabilities & Equity? Please specify your answer in the same units as the balance sheet.

Answer 1

Equipment A/c
Particulars	Amount ($)	Particulars	Amount ($)
To Balance b/d	15800	By Balance c/d	59800
To Cash A/c	44000
	59800		59800
Accounts Receivable A/c
Particulars	Amount ($)	Particulars	Amount ($)
To Balance b/d	4800	By Balance c/d	16800
To Cash A/c	12000
	16800		16800
Inventory A/c
Particulars	Amount ($)	Particulars	Amount ($)
To Balance b/d	3800	By Balance c/d	18800
To Accounts Payable A/c	15000
	18800		18800
Accounts Payable A/c
Particulars	Amount ($)	Particulars	Amount ($)
By Balance c/d	17400	By Balance b/d	2400
		By Inventory A/c	15000
	17400		17400

The revised balance of Total Equity and Liabilities after the given transactions is: Existing Total Equity and Liabilities + Increase in Accounts Payable => $40,000 + $15,000 = $55,000

Net income for first quarter is $3,158,900

Ruston Company
Statement of Profit and Loss
For the Quarter ended March 31, 2018
Particulars	Amount ($)	Amount ($)
Sales		$ 8,700,000
Less: Cost of goods sold		$ (2,175,000)
Gross Profit		$ 6,525,000
Less: Operating Expenses
- SG&A	$ 870,000
- Other expenses	$ 500,000
		$ (1,370,000)
Operating Income		$   5,155,000
Non Operating and Others
- Interest		$      (60,000)
Profit before Tax		$ 5,095,000
Less: Tax @ 38%		$ (1,936,100)
Net Income		$   3,158,900