Assets

Current assets

Cash $20,000

Accounts receivable42,000

Inventory(a)

Prepaid expenses9,000

Total current assets(b)

Long-term asset

Building(c)

Less: accumulated dep(39,000)

Total long-term assets 210,000

Total assets (d)

Liabilities and stockholder equity

Liabilities

Current liabilities

Accounts payable$(e)

Notes payable12,000

Income tax payable10,500

Total current liabilities37,500

Long-term liabilities

Mortgage payable(f)

Total liabilities (g)

Stockholders' equity

Common stock105,000

Retained earnings(h)

Total stockholders' equity (i)

Total liabilities and stockholders' equity (j)