Balance Sheet Assets Cash in current account Accounts receivable (note 1) Cars and car parts (note 2) Accumulated depreciation on cars (note 3) Equipment (note 4) Land held for future development I Notes 3,900 96,000 1. Accounts receivable is composed of the following: Debit balances in customer accounts 812,000 (87,400) 150,000 Credit balances in customer accounts (54,000) $ 96,000 169,000 226,000 2. The cars and car parts account is composed of the following: Car parts for service department (at cost) $ 66,000 $ 1,219,500 Cars intended for resale (at retail price) 642,000 Cars used by executives for business purposes 104,000 $ 812,000 Equities Accounts payable (note 5) Bank ban payable (note 6) Common shares (42,472 shares authorized and issued) Net income Print Done 395,000 322,000 424,717 77,783 $ 1,219,500 The purchase price of the cars intended for resale was $529,000. The cars for the executives were purchased on June 30, 2023, at a cost of $104,000. 3. All cars that require depreciation are being depreciated on a straight-line basis with a three-year estimated useful life and a residual value of 30% of original cost. 4. The equipment was purchased for $169,000 on January 2, 2023. The price paid was a bargain because the regular price for this equipment was $217,000. The equipment should last for seven vears but would be worthless at that time. However. the company plans to replace it at the end of Print Done