Debit

Cash 10,600

Accounts receivable 145,000

Prepaid rent 6.500 Inventory 27,000

Equipment 325,000

Costs of goods sold 190,000

Salaries expense 125,000

Rent expense 18,000

Depreciation expense 25.000

Interest expense 3.200

Advertising expense 1.700

Totals 877000

Credit

Accumulated depreciation-equipment 130,000

Accounts payable 35,000

Notes payable-due in three months 32,000

Salaries payable 4,000

Interest payable 1,000

Common stock 230,000

Retained earnings 45,000

Sales revenue 400,000

Totals 877000

5) Prepare a classified balance sheet for China Tea Company as of December 31, 2018.