Question

Gulf Shipping Company Balance Sheet As of March 11, 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

Use T-accounts to record the transactions below, which occur on March 12, 2020, close the T-accounts, and construct a balance sheet to answer the question.

1. Purchase equipment for $50,000 in cash
2. Borrow $67,000 from a bank
3. Issue $80,000 in stock

What is the final amount in Total Equity?

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

Answer :

1. Purchase equipment for $50,000 in cash

Property Plant & Equipment account

Particulars	Amount (in $ 000)	Particulars	Amount (in $ 000)
Beginning balance	14,800	Ending balance	14,850
Cash (Purchase)	50
TOTAL	14,850	TOTAL	14,850

2. Borrow $67,000 from a bank

Debt Account

Particulars	Amount (in $ 000)	Particulars	Amount (in $ 000)
Ending balance	3,267	Beginning balance	3,200
		Cash	67
TOTAL	3,267	TOTAL	3,267

3. Issue $80,000 in stock

Paid-In Capital Account

Particulars	Amount (in $ 000)	Particulars	Amount (in $ 000)
Ending balance	7,780	Beginning balance	7,700
		Cash (Issue of stock)	80
TOTAL	7,780	TOTAL	7,780

4. Cash Account

Particulars	Amount (in $ 000)	Particulars	Amount (in $ 000)
Beginning balance	14,300	Property Plant & Equipment A/c	50
Debt A/c	67	Ending balance	14,397
Paid-In Capital A/c	80
TOTAL	14,447	TOTAL	14,447

Balance Sheet

As of March 11, 2020
(amounts in thousands)

Assets	Amount (in $)	Liabilities	Amount (in $)
Cash	14,397	Accounts Payable	1,900
Accounts Receivable	4,100	Debt	3,267
Inventory	5,800	Other Liabilities	4,000
Property Plant & Equipment	14,850	Total Liabilities	9,167
Other Assets	700	Paid-In Capital	7,780
		Retained Earnings	22,900
		Total Equity	30,680
Total Assets	39,847	Total Liabilities & Equity	39,847

Final amount in Total Equity is $30,680 (i.e. $30,680,000)