Makaw Company is a sole proprietorship with the following simplified balance sheet:

Tom Makaw decided to incorporate his company on May 31, 20X1, by selling 5,000 shares of stock for $10 each and keeping 10,000 shares for himself. Prepare a balance sheet for the new corporation.

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Assets Liabilities and Owner's Equity Cash Accounts receivable Equipment Total assets 30,000 Accounts payable 25,000 Other liabilities S 15,000 35,000 150000 S200,000 145.000Makaw, capital $200,000 Total liabilities and owners' equity