Exercise 1: Paul's Guitar Shoppe Below you will find the items for the balance sheet for Paul's Guitar Shoppe for the period ended December 31, 2015. Construct the balance sheet. Paul's Guitar Shoppe Inventory $39,800 Prepaid rent $1,000 Long term liabilities $99,500 Retained earnings $8,950 Accounts receivable $300 Accounts payable $49,000 Accrued expenses $450 Property and Equipment $100,000 Cash $32,800 Accumulated depreciation See note below Common stock $11,000 I Note: Paul's Property and Equipment (which is valued at $100,000) has a 20 year life and was purchased on December 31, 2014