The T-accounts below summarize transactions of Torche Corporation from February 22 to February 25, 2024:

Cash

Balance
14,700
12
15
80
58
44
4
PP&E, Net

Balance
15,800
44
Accounts Payable

4
Balance
2,400
15
Other Liabilities

Balance
5,000
Accounts Receivable

Balance
4,800
12
Other Assets

Balance
900
Debt

Balance
3,700
58
Paid-In Capital

Balance
6,000
80
Inventory

Balance
3,800
15
12
Retained Earnings

Balance
22,900
3
What is the final amount in Total Liabilities & Equity?

Note: No unit adjustments are necessary.

To determine the final amount in Total Liabilities & Equity for Torche Corporation, we must calculate the final balances of the individual components and then sum them up. The equation for Total Liabilities & Equity is:

\[
\text{Total Liabilities & Equity} = \text{Accounts Payable} + \text{Other Liabilities} + \text{Debt} + \text{Paid-In Capital} + \text{Retained Earnings}
\]

Let's break down the individual components based on the T-accounts:

1. **Accounts Payable:**
   - Beginning Balance = 2,400
   - Debit (15) decreases it.
   - Final Balance = 2,400 - 15 = 2,385

2. **Other Liabilities:**
   - Beginning Balance = 5,000
   - No transactions are mentioned, so the Final Balance remains 5,000.

3. **Debt:**
   - Beginning Balance = 3,700
   - Debit (58) decreases it.
   - Final Balance = 3,700 - 58 = 3,642

4. **Paid-In Capital:**
   - Beginning Balance = 6,000
   - Credit (80) increases it.
   - Final Balance = 6,000 + 80 = 6,080

5. **Retained Earnings:**
   - Beginning Balance = 22,900
   - Debit (3) decreases it.
   - Final Balance = 22,900 - 3 = 22,897

Now, sum these final balances:

\[
\text{Total Liabilities & Equity} = 2,385 + 5,000 + 3,642 + 6,080 + 22,897 = 40,004
\]

The final amount in Total Liabilities & Equity is **40,004**.

Would you like further details or have any questions?

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Here are some related questions to explore:

1. What is the final balance of Cash after all transactions?
2. How did the transaction of 15 affect the Inventory account?
3. What is the relationship between Retained Earnings and Net Income?
4. How do debits and credits affect the accounts in the balance sheet?
5. How would a transaction of 100 crediting Cash and debiting PP&E affect Total Assets?
6. What would be the effect on Paid-In Capital if there was an issuance of new shares?
7. How does an increase in Other Liabilities impact the financial position of a company?
8. What are the implications of decreasing Debt on a company’s leverage?

**Tip:** When analyzing financial statements, ensure you understand how transactions impact both sides of the accounting equation: Assets = Liabilities + Equity.

Learn how to calculate the final amount in Total Liabilities & Equity for Torche Corporation based on the provided T-account transactions from February 22 to February 25, 2024. This detailed solution breaks down the balances of Accounts Payable, Other Liabilities, Debt, Paid-In Capital, and Retained Earnings. Discover how each transaction affects the financial position of the company.

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