Question

Gulf Shipping Company Balance Sheet As of January 24, 2020 (amounts in thousands)
Cash	14,300	Accounts Payable	1,900
Accounts Receivable	4,100	Debt	3,200
Inventory	5,800	Other Liabilities	4,000
Property Plant & Equipment	14,800	Total Liabilities	9,100
Other Assets	700	Paid-In Capital	7,700
		Retained Earnings	22,900
		Total Equity	30,600
Total Assets	39,700	Total Liabilities & Equity	39,700

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. Purchase equipment for $50,000 in cash
Jan 26. Borrow $67,000 from a bank
Jan 27. Issue $80,000 in stock
Jan 28. Buy $16,000 worth of manufacturing supplies on credit
Jan 29. Pay $7,000 owed to a supplier

What is the final amount in Total Equity?

Answer 1

Journal Entries

Date	Accounts	Debit	Credit
Jan 25	Property Plant&Equipment a/c	50000
	Cash a/c		50000
Jan 26	Cash a/c	67000
	Debt a/c		67000
Jan 27	Cash a/c	80000
	Paid-in Capital a/c		80000
Jan 28	Inventory a/c	16000
	Accounts Payable a/c		16000
Jan 29	Accounts Payable a/c	7000
	Cash a/c		7000

Cash a/c

Particulars	Amount	Particulars	Amount
Balance b/d	14300	Property plant&equipment a/c	50000
Debt a/c	67000	Accounts Payable a/c	7000
Paid-in Capital a/c	80000	Balace c/d	104300
	161300		161300

Property Plant&Equipment a/c

Particulars	Amount	Particulars	Amount
Balance b/d	14800
Cash a/c	50000	Balance c/d	64800
	64800		64800

Debt a/c

Particulars	Amount	Particulars	Amount
		Balance b/d	3200
Balance c/d	70200	Cash a/c	67000
	70200		70200

Paid-in Capital a/c

Particulars	Amount	Particulars	Amount
		Balance b/d	7700
Balance c/d	87700	Cash a/c	80000
	87700		87700

Inventory a/c

Particulars	Amount	Particulars	Amount
Balance b/d	5800
Accounts Payable a/c	16000	Balance c/d	21800
	21800		21800

Accounts Payable a/c

Particulars	Amount	Particulars	Amount
Cash a/c	7000	Balance b/d	1900
Balance c/d	10900	Inventory a/c	16000
	17900		17900

Gulf Shipping Company's Balance Sheet

	Amount		Amount
Cash	104300	Accounts Payable	10900
Accounts Receivable	4100	Debt	70200
Inventory	21800	Other Liabilities	4000
Property Plant & Equipment	64800	Total Liabilities	85100
Other Assets	700	Paid-in Capital	87700
		Retained Earnings	22900
		Total Equity	110600
Total Assets	195700	Total Liabilities&Equity	195700

Final Balance in Total Equity is 110,600.