Assets: Cash Accounts receivable Merchandise inventory Long-term investments Equipment Accumulated depreciation Total assets Liabilities: Accounts payable Income taxes payable Bonds payable Total liabilities Equity: Common stock Balance Sheets At December 31 Paid-in capital in excess of par Retained earnings Total equity Total liabilities and equity Year 2 Year 1 $ 24,640 $ 23,040 32,180 29,400 73,225 61,710 55,800 56,400 175,500 (33,550) $ 327,795 $ 65,000 10,750 48,725 145,500 (31,200) $ 284,850 40,380 10,200 66,000 $ 124,475 $ 116,580 117,000 13,000 73,320 $ 203,320 96,000 9,000 63,270 $ 168,270 $ 327,795 $ 284,850