Question

Dansko Integrated Balance Sheet As of March 11, 2018 (amounts in thousands)
Cash	9,900	Accounts Payable	2,700
Accounts Receivable	4,500	Debt	3,500
Inventory	3,800	Other Liabilities	1,000
Property Plant & Equipment	16,800	Total Liabilities	7,200
Other Assets	1,600	Paid-In Capital	8,000
		Retained Earnings	21,400
		Total Equity	29,400
Total Assets	36,600	Total Liabilities & Equity	36,600

Use T-accounts to record the transactions below, which occur on March 12, 2018, close the T-accounts, and construct a balance sheet to answer the question.

1. Consume good or service and pay expense of $3,000
2. Sell product for $40,000 in cash with historical cost of $32,000
3. Sell, deliver, and receive payment of $25,000 for service

What is the final amount in Total Liabilities & Equity?

Please specify your answer in the same units as the balance sheet.

Answer 1

• All working forms part of the answer.
• Since balance of only Liabilities & Equity is required, T accounts of only liabilities & equity have been provided for assistance.
• T accounts

Accounts Payable
Ending Balance $ 2700	Beg Bal $ 2700
Debt
Ending Balance $ 3500	Beg Bal $ 3500
Other Liabilities
Ending Balance $ 1000	Beg Bal $ 1000
Paid In Capital
Ending Balance $ 8000	Beg Bal $ 8000
Retained earnings
(1) $ 3000	Beg Bal $ 21400
Ending Balance $ 51,400	(2) $ 8,000 [40000 - 32000]
	(3) $ 25,000

• Balances given vs Balances after transactions:

	Before	After Transactions
Accounts Payable	$                2,700.00	$            2,700.00
Debt	$                3,500.00	$            3,500.00
Other Liabilities	$                1,000.00	$            1,000.00
Total Liabilities	$                7,200.00	$            7,200.00
Paid-In Capital	$                8,000.00	$            8,000.00
Retained Earnings	$             21,400.00	$          51,400.00
Total Equity	$             29,400.00	$          59,400.00
Total Liabilities & Equity	$             36,600.00	$          66,600.00

• Answer

Final Amount in Total Liabilities & Equity = $ 66,600