Klein Interiors has the following account balances at the end of the year. Use only the appropriate accounts to prepare a balance sheet. AccountsBalancesEquipment$78,000Accounts Payable12,000Common Stock20,000Service Revenue62,000Cash8,000Retained Earnings?Salaries Expense38,000Notes Payable25,000
What will be an ideal response?
| Klein Interiors |
| Balance Sheet |
| December 31 |
| Assets | Liabilities | ? | ||
| Cash | $8,000 | Accounts payable | $12,000 | ? |
| Equipment | 78,000 | Notes payable | 25,000 | ? |
| ? | ? | Total liabilities | 37,000 | ? |
| ? | ? | Stockholders' Equity |
| ? | ? | Common stock | 20,000 | ? |
| ? | ? | Retained earnings | 29,000* | ? |
| ? | Total stockholders' equity | 49,000 | ? | |
| Total assets | $86,000 | Total liabilities and stockholders' equity | $86,000 | ? |
| $86,000 | = | $37,000 | + | ($20,000 + Retained earnings) |
| $86,000 | - | $37,000 | - | $20,000 | = | Retained earnings |
| ? | $29,000 | = | Retained earnings |
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