3. Accounting equation Craft Carpentry Limited reports the following statement of financial position accounts, in alphabetica order: 6,400 Accounts payable Accounts receivable 10,800 9,000 Bank loan payable 1,250 Cash 1,000 Common shares 19,400 Equipment 2,000 Income tax payable Interest payable 100 Prepaid insurance 600 Retained earnings 12,250 1,000 Salaries payable 1,200 Supplies 1,500 Unearned revenue Instructions 1. Classify each account as an asset (A), liability (L), or shareholders' equity (SE) item. Calculate total assets, tota abilities, and total shareholders' equity and prepare Craft Carpentry's accounting equation. 3. Craft Carpentrys retained earnings was $2,250 at the beginning of the year. The company reported revenues of $72,000, expenses of $50,000, and dividends of $12,000 during the year. Prepare a calculation that proves how retained earnings of $12,250 at the end of the year were determined