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Cash Acme Company Balance Sheet As of January 5, 2021 (amounts in thousands) 13,700 Accounts Payable 3,200 Debt 5,100 Other Liabilities 15,400 Total Liabilities 2,000 Accounts Receivable 3,600 Inventory 900 6,500 Property Plant & Equipment Other Assets 800 Paid-In Capital Retained Earnings Total Equity 7,200 24,500 31,700 38,200 Total Assets 38,200 Total Liabilities & Equity

Update the balance sheet above to reflect the transactions below, which occur on January 6, 2021
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
What is the final amount in Accounts Payable?
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).

User Dekike
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1 Answer

15 votes
15 votes

Answer:

Acme Company

1. Acme Company

Balance Sheet

As of January 6, 2021 (amounts in thousands)

Cash 13,819

Accounts Receivable 3,188

Inventory 5,100

Property Plant & Equipment 15,445

Other Assets 800

Total Assets 38,352

Liabilities and Equity:

Accounts Payable 2,000

Bank Payable 67

Debt 3,600

Other Liabilities 900

Total Liabilities 6,567

Equity:

Paid-In Capital 7,285

Retained Earnings 24,500

Total Equity 31,785

Total Liabilities & Equity 38,352

2. The final amount in Accounts Payable remains $2,000,000, but the Bank Payable increased from zero to $67,000.

Step-by-step explanation:

a) Data and Calculations:

Acme Company

Balance Sheet

As of January 5, 2021 (amounts in thousands)

Cash 13,700

Accounts Receivable 3,200

Inventory 5,100

Property Plant & Equipment 15,400

Other Assets 800

Total Assets 38,200

Liabilities and Equity:

Accounts Payable 2,000

Debt 3,600

Other Liabilities 900

Total Liabilities 6,500

Equity:

Paid-In Capital 7,200

Retained Earnings 24,500

Total Equity 31,700

Total Liabilities & Equity 38,200

Transaction Analysis:

1. Cash $12 Accounts receivable $12

2. Equipment $45 Cash $45

3. Cash $85 Paid-in Capital $85

4. Cash $67 Bank payable $67

Cash

Beginning balance 13,700

Accounts receivable 12

2. Equipment (45)

3. Paid-in Capital 85

4. Bank payable 67

Ending balance 13,819

User Nonagon
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