Question

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. Sell, deliver, and receive payment of $25,000 for service
2. Consume good or service and pay expense of $1,000
3. Sell product for $30,000 in cash with historical cost of $24,000

What is the final amount in Total Liabilities & Equity?

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

Answer 1

Gulf Shipping company Balance sheet As of March 1, 2019 Camound in thousands) $ $ 9 $ 6 cash 7 Accounts Recivable inventory Propert pont and Quiment 10 other Assets 14,354 4100 5776 14,800 Accounts Payable Debt other liabilities $ 1900 $ 31200 $ 4000 Total trabilities $9100 $ 700 $ 7700 $ 22930 paid in capital Retained Earnings Total Equity Total liabilities fcquity 9.30630 $39730 13 Total Assets $39.930 * invertory was decreased by $ 24,000 as cost of goods sold * cash coas increased by $54,000 as cash received less cash spent ($25.000, $1,000+ $30,000) & Retained Earnings will incease by $30,000 Service Revenue Peaing Balante cash $ 25,000 Ey Pense Opening balance cash. $ 1000

Sales Olening Bounce cash $ 30,000 sold cost of broods Opening Balance lovertory $ 24,000 increase by $30.000 Therefore Retained farmings will ($ 85,000 - $1,000 + $30,000 $24 000