Question

Acme Company Balance Sheet As of January 5, 2018 (amounts in thousands) Cash 14,700 Accounts Payable 2,400 Accounts Receivable 4,800 Debt 3,700 Inventory 3,800 Other Liabilities 5,000 Property Plant & Equipment 15,800 Total Liabilities 11,100 Other Assets 900 Paid-In Capital 6,000 Retained Earnings 22,900 Total Equity 28,900 Total Assets 40,000 Total Liabilities & Equity 40,000 Update the balance sheet above to reflect the transactions below, which occur on January 6, 2018 1. Receive payment of $12,000 owed by a customer 2. Buy $15,000 worth of manufacturing supplies on credit 3. Purchase equipment for $44,000 in cash 4. Issue $80,000 in stock 5. Pay $4,000 owed to a supplier 6. Borrow $58,000 from a bank 7. Buy $15,000 worth of manufacturing supplies on credit What is the final amount in Accounts Payable? Please specify your answer in the same units as the balance sheet.

Answer 1

Accounts Payable
Opening	$   2,400.00
Purchase	$ 15,000.00
Payment	$ -4,000.00
Purchase	$ 15,000.00
Balance	$ 28,400.00

Particulars	Amount	Particulars	Amount
Cash	$ 1,16,700.00	Accounts Payable	$     28,400.00
Accounts Receivables (Assume Zero)	$                    -	Debt	$     61,700.00
Inventory	$     33,800.00	Other Liabilities	$       5,000.00
PPE	$     55,800.00	Total Liabilities	$     11,100.00
Other Assets	$           900.00	Paid in Capital	$     86,000.00
		Retained Earning (Balancing)	$     35,200.00
		Equity	$ 1,21,200.00
	$ 2,07,200.00		$ 2,07,200.00

The debtors balance given in balance sheet is $ 4,800 and subsequently it is said that they recovered $12,000 without specifying the sales made. Therefore based on assumption that debtors are zero balance and balance adjusted with retained earnings.

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