Identify debit and credit balances, and prepare a balance sheet BML Products Ltd manufactures and sells children’s toys. Here are the company’s balance sheet accounts as at 30 June 2022, in alphabetical order.

$ $

Accumulated depreciation 63 700 Owing from customers 6 200 Bank account balance 14 300 Owing to suppliers 21 900 Bank loan 21 200 Retained earnings 47 500 Building 102 100 Share capital issued 25 000 Cash on hand 2 500 Short-term part of mortgage 8 000 Employees’ tax not yet remitted 600 Unpaid employee wages 1 800 Fixtures and equipment 37 900 Unsold finished products 29 600 Land 48 000 Unused office supplies 1 400 Long-term part of mortgage owing 71 000 Unused product raw materials 18 700 Required:
1 Decide which accounts have debit balances and which have credit balances. According to the company’s accounting system, total debits = total credits = $260 700.
2 Based on your answer to question 1, prepare the company’s 30 June 2022 balance sheet from the accounts provided.
3 Rewrite the balance sheet using account titles that you are more likely to see in actual financial statements.
4 Comment briefly on the company’s financial condition, as shown by the balance sheet.