Blake Matthews incorporated his paper manufacturing operations on January 1, 2015, by issuing 5,000 shares of $1 par common stock to himself. The following balance sheet for the new corporation was prepared. Looseleaf Corporation Balance Sheet January 1, 2015 Cash. Accounts receivable. Inventory Equipment... Total... Accounts payable-suppliers Capital stock, $1 par.... Additional paid-in capital. Total...... $ 15,000 55,000 105,000 110,000 $285,000 $ 85,000 5,000 195,000 $285,000 During 2015, Looseleaf Corporation engaged in the following transactions. (a) Looseleaf Corporation produced paper costing $395,000. Paper costs consisted of the following: $307,000, raw materials purchased; $48,000, labor, and $40,000, overhead. Looseleaf Corporation paid the $85,000 owed to suppliers as of January 1 and $210,000 of the $307,000 of raw materials purchased during the year. All labor, except for $6,000, and recorded overhead were paid in cash during the year. Other operating expenses of $8,500 were incurred and paid in 2015. (b) Paper costing $320,000 was sold during 2015 for $390,000. All sales were made on credit, and collections on receivables were $350,000 (c) Looseleaf Corporation purchased machinery fair market value = $245,000) by trading in old equipment costing $140,000 and paying $105,000 in cash. There is no accumulated depreciation on the old equipment as it was revalued when the new corporation was formed. (d) Looseleaf Corporation issued an additional 15,000 shares of common stock for $10 per share and declared a dividend of $1.75 per share to all stockholders of record as of December 31, 2015, payable on January 15, 2016. (e) Depreciation expense for 2015 was $45,000. The allowance for bad debts after year-end adjustments is $4,000 Instructions: Prepare a properly classified balance sheet for Looseleaf Corporation as of December 31, 2015