Question

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. Consume good or service and pay expense of $2,000
Jan 26. Sell product for $40,000 in cash with historical cost of $32,000
Jan 27. Sell, deliver, and receive payment of $25,000 for service

What is the final amount in Total Liabilities & Equity?

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

Answer 1

(in 000's) Credit Date Jan-25 Debit $ 2 Journal Service charges Cash (Consume services and paid in cash) Jan-26 $ 40 Cash Sales (To record sales) $ 40 Jan-26 $ 32 Cost of goods sold Inventory (cost of goods sold) 32 Jan-27 27 Cash $ Service Revenue (To record cash received for services performed) $ 2 Jan-31 $ 34 Closing entries Income Summary Service Charges Cost of goods sold (Transfer all expenses to Income Summary) $ $ 32 Jan-31 $ $ 40 27 Sales Service Revenue Income Summary (Transfer all incomes to Income Summary) $ 67 Jan-31 Income Summary $ 33 Retained Earnings $ (To record transfer of Net income to Retained earnings) 33

D Cash in $ 000's 8,400 in $ 000's Date Jan-25 Particulars Service Charges Date Particulars Jan-24 Beginning Balance Jan-26 Sales Jan-27 Service Revenue 40 27 Jan-31 Balance c/d Total 8,465 8,467 Total L 8,467 Dr. Date Particulars Jan-31 Service Charges Jan-31 Cost of Goods sold Income Summary in $ 000's Date 2 Jan-31 32 Jan-31 Particulars Sales Service Revenue in $ 000's 40 27 Jan-31 Retained Earnings Total 33 67 Total 67 Cash Accounts Receivable Inventory (4200-32) Property, Plant and Equipment Other Assets Stuart Company Balance Sheet As of January 24, 2019 (amount in thousands) 8,465 Accounts Payable 4,700 Debt 4,168 Other Liabilities 17,200 Total Liabilities 2,800 Paid-in Capital Retained Earnings (23500+33) Total Equity 37,333 Total Liabilites & Equity 2,800 3,400 900 7,100 6,700 23,533 30,233 37,333 Total Assets The final amount in Total Liabilities & Equity is 37,333