Acme Company Balance Sheet As of January 5, 2020 (amounts in thousands) Cash 9,700 Accounts Payable...

Acme Company Balance Sheet As of January 5, 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

Update the balance sheet above to reflect the transactions below, which occur on January 6, 2020

1. Buy $15,000 worth of manufacturing supplies on credit
2. Issue $85,000 in stock
3. Borrow $63,000 from a bank
4. Pay $5,000 owed to a supplier
5. Receive payment of $12,000 owed by a customer
6. Purchase equipment for $44,000 in cash
7. Pay $7,000 owed to a supplier

What is the final amount in Accounts Receivable?

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).

Solutions

Expert Solution

Please find below an updated balance sheet of Acme Company as on 06th January 2020 after considering all the given 7 transactions:

Acme Company updated Balance Sheet As of January 6, 2020

Assets	Amount (in '000)	Liabilities	Amount (in '000)
Cash	9,719	Accounts Payable	1,503
Accounts Receivable	4,488	Debt	2,900
Inventory	3,730	Other Liabilities	863
Property Plant & Equipment	16,444	Total Liabilities	5,266
Other Assets	1,700	Paid-In Capital	7,300
		Retained Earnings	23,515
		Total Equity	30,815
Total Assets	36,081	Total Liabilities & Equity	36,081

The final updated amount in Accounts Receivable A/c is $ 4,488 (in '000')

Note: Here below given is a detailed working on above provided updated balance sheet of Acme Company as on 06.01.2020 for your easy reference.

Accounts Payable A/c
Date	Particulars	Amt (in '000')	Date	Particulars	Amt (in '000')
06.01.2020	To Cash A/c	5	06.01.2020	By Opening Balance b/d	1,500
06.01.2020	To Cash A/c	7	06.01.2020	By Inventory A/c	15
06.01.2020	To Closing Balance b/f	1,503
TOTALS	1,515	TOTALS	1,515

Accounts Receivable A/c
Date	Particulars	Amt (in '000')	Date	Particulars	Amt (in '000')
06.01.2020	To Opening Balance b/d	4,500	06.01.2020	By Cash A/c	12
			06.01.2020	By Closing Balance b/f	4,488
TOTALS	4,500	TOTALS	4,500

Property Plant & Equipment A/c
Date	Particulars	Amt (in '000')	Date	Particulars	Amt (in '000')
06.01.2020	To Opening Balance b/d	16,400	06.01.2020	By Closing Balance b/f	16,444
06.01.2020	To Cash A/c	44
TOTALS	16,444	TOTALS	16,444

Cash A/c
Date	Particulars	Amt (in '000')	Date	Particulars	Amt (in '000')
06.01.2020	To Opening Balance b/d	9,700	06.01.2020	By Accounts Payable A/c	5
06.01.2020	To Accounts Receivable A/c	12	06.01.2020	By Accounts Payable A/c	7
06.01.2020	To Bank Borrowing A/c	63	06.01.2020	By Property Plant & Equipment A/c	44
			06.01.2020	By Closing Balance b/f	9,719
TOTALS	9,775	TOTALS	9,775

Other Liabilities A/c (Bank Borrowing)
Date	Particulars	Amt (in '000')	Date	Particulars	Amt (in '000')
06.01.2020	To Closing Balance b/f	863	06.01.2020	To Opening Balance b/d	800
			06.01.2020	By Cash A/c	63
TOTALS	863	TOTALS	863

Inventory A/c
Date	Particulars	Amt (in '000')	Date	Particulars	Amt (in '000')
06.01.2020	To Opening Balance b/d	3,800	06.01.2020	By Stock Issuance A/c	85
06.01.2020	To Accounts Payable A/c	15	06.01.2020	By Closing Balance b/f	3,730
TOTALS	3,815	TOTALS	3,815

Retained Earnings A/c
Date	Particulars	Amt (in '000')	Date	Particulars	Amt (in '000')
06.01.2020	To Gross Loss b/d	85	06.01.2020	By Opening Balance b/d	23,600
06.01.2020	To Closing Balance b/f	23,515
TOTALS	23,600	TOTALS	23,600

Trading A/c
Date	Particulars	Amt (in '000')	Date	Particulars	Amt (in '000')
06.01.2020	To Stock Issuance A/c	85	06.01.2020	By Gross Loss b/f	85
TOTALS	85	TOTALS	85

ekkarill92 answered 1 year ago

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