Question

Valley Technology Balance Sheet As of January 24, 2020 (amounts in thousands)
Cash	9,700	Accounts Payable	1,500
Accounts Receivable	4,500	Debt	2,900
Inventory	3,800	Other Liabilities	800
Property Plant & Equipment	16,400	Total Liabilities	5,200
Other Assets	1,700	Paid-In Capital	7,300
		Retained Earnings	23,600
		Total Equity	30,900
Total Assets	36,100	Total Liabilities & Equity	36,100

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. Buy $15,000 worth of manufacturing supplies on credit
Jan 26. Issue $85,000 in stock
Jan 27. Borrow $63,000 from a bank

What is the final amount in Total Liabilities?

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).

Answer 1

Journal		Amount in $ '000'
Date	Account Titles	Debit	Credit
Jan.25	Purchases	15
	Accounts payable		15
Jan.26	Cash	85
	Paid in Capital		85
Jan.27	Cash	63
	Debt		63
	Cash	Amount in $ '000 '
Opening	9,700	Closing	9,848
Jan.26	85
Jan.27	63
	9,848		9,848
	Debt	Amount in $ '000 '
Closing	2,963	Opening	2,900
		Jan.27	63
	2,963		2,963
	Paid in Capital	Amount in $ '000 '
Closing	7,385	Opening	7,300
		Jan.26	85
	7,385		7,385
Balance Sheet
(amounts in thousands $ )
Cash ( 9,700 + 85 + 63 )	9,848	Accounts Payable ( 1,500 + 15 )	1,515
Accounts Receivable	4,500	Debt ( 2,900 + 63 )	2,963
Inventory ( 3,800 + 15 )	3,815	Other Liabilities	800
Property Plant & Equipment	16,400	Total Liabilities	5,278
Other Assets	1,700	Paid-In Capital ( 7,300 + 85 )	7,385
		Retained Earnings	23,600
		Total Equity	30,985
Total Assets	36,263	Total Liabilities & Equity	36,263
The Final Amount in total liabilities is $ 5,278.