Balance Sheet June 30th, Year 5 Assets Cash 10,000 Accounts receivables 34,000 Inventory 60,000 Prepaid Insurance 4,000 Capital Assets 200,000 Accumulated depreciation (40,000) Total Assets 268,000 Liabilities and Equity Accounts Payable 19,000 4,000 1,000 Wages Payable Income Tax Payable Notes Payables 80,000 Common Shares 100,000 Retained Earnings 64,000 Total Liabilities and Equity 268,000 The following are all transactions that happened during Year 6: Made sales on account of $250,000 Collected accounts receivable of $252,800 Purchased merchandise on account of $146,200 Determined cost of goods sold was $140,000 Paid accounts payable (for merchandise purchased) of $143,000 Paid wages to employees of $52,500 Accrued wages expense (and wages payable) of $1,500 at June 30th, Year 6. Paid insurance premium of $18,000 to extend coverage for three years. Allocated $5,000 of prepaid insurance to insurance expense. Recorded Year 6 total income tax expense (and income tax payable) of $13,000 Paid income taxes to government of $11.500 (this represents the final portion of Year 5 taxes and initial installments of Year 6 taxes).