On January 6, Evergreen Market purchased merchandise for $4,000 and added it to its inventory. It agreed to pay the vendor within 30 days.

Change the following January 5 balance sheet so that it reports the financial condition on January 6. Recall that an obligation to pay a vendor is called an “Account Payable .” Be sure to change the totals.

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EVERGREEN MARKET BALANCE SHEET AS OF JANUARY 5 Assets Liabilities & Equity Cash $45,800 Inventory. 4,500 Note Payable... $10,000 Berg, Capital 40,000 Retained Earnings. 300 Total. $50,300 Total.. $50,300