Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Acme Company Balance Sheet As of January 5, 2020 (amounts in thousands) Cash9,900Accounts Payable2,700Accounts Receivable4,500Debt3,500Inventory3,800Other Liabilities1,000Property Plant & Equipment16,800 Total Liabilities7,200 Other Assets1,600Paid-In Capital8,000Retained Earnings21,400

Acme Company

Balance Sheet

As of January 5, 2020

(amounts in thousands)Cash9,900Accounts Payable2,700Accounts Receivable4,500Debt3,500Inventory3,800Other Liabilities1,000Property Plant & Equipment16,800Total Liabilities7,200Other Assets1,600Paid-In Capital8,000Retained Earnings21,400Total Equity29,400Total Assets36,600Total Liabilities & Equity36,600

Update the balance sheet above to reflect the transactions below, which occur on January 6, 2020

1. Pay $4,000 owed to a supplier

2. Issue $90,000 in stock

3. Buy $16,000 worth of manufacturing supplies on credit

4. Purchase equipment for $49,000 in cash

5. Borrow $65,000 from a bank

6. Receive payment of $10,000 owed by a customer

7. Buy $17,000 worth of manufacturing supplies on credit

What is the final amount in Inventory?

Note: Transaction amounts are provided in dollars but the balance sheet units are thousands of dollars.

Please specify your answer in the same units as the balance sheet (i.e., enter the number from your updated balance sheet).

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

College Accounting

Authors: James A Heintz, Robert W Parry

20th Edition

538745215, 978-1111624743

More Books

Students also viewed these Accounting questions

Question

3. What values would you say are your core values?

Answered: 1 week ago