To get ready for preparing the financial statements, the balance in each asset, liability, and equity account is calculated. (Revenue and expense accounts have zero balances because of the closing process.) For the Cash account in Exhibit 5, the calculation is as follows:

Calculate the balance for each account in Exhibit 5.

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Cash (Dr.) (Cr.) 40,000 2,000 10,000 800 1,400 52,200 5,000 Balance 47,200