Walter Adkins, manager of Adkins Foods, needs assistance in preparing the or- ganization’s balance sheet at December 31, 20X1. Financial information avail- able is as follows:

Account Title Account Balance Mortgage payable $310,000(1) Accounts payable 30,000 Accounts receivable 25,000 Cash 10,000 Accrued expenses 15,000 Income taxes payable 10,000 Inventory—food 11,000 Inventory—supplies 2,000 Prepaid insurance 4,000(2)
Common stock 275,000 Investments 50,000 Land 100,000 Prepaid maintenance 1,000 Buildings 800,000 Furniture 100,000 Equipment 200,000 Allowance for doubtful accounts 2,000 Accumulated depreciation 400,000 Retained earnings 241,000(3)
(1) Fifty thousand of this mortgage payable must be paid on June 30, 20X2.
(2) The prepaid insurance of $4,000 pertains to the period of October 1, 20X1-September 30, 20X2. This account has not been adjusted to reflect expired insurance as of December 31, 20X1.
(3) This account has not been adjusted to reflect the “preliminary” net income of $20,000 for 20X1 or information from note 2 above.
Required:
Prepare the balance sheet for Adkins Foods at December 31, 20X1.