Knotting Company was formed and began business on January 1, 2022, when J. T. Wood transferred merchandise inventory with a value of $66,000, cash of $60,000, accounts receivable of $63,000, and accounts payable of $36,800. Common stock with a par value of $5 per share was issued to Mr. Wood. The company's common stock was recorded at par. Knotting Company's statement of cash flows for 2022 is shown below: KNOTTING COMPANY Statement of Cash Flows Year Ended December 31, 2022 Cash Flow from Operations Net Income Adjustments Depreciation of building 46,000 5,500 Depreciation of equipment 6,100 Increase in accounts receivable (16,400) Increase in inventory (7,900) Increase in prepaid insurance (800) Increase in accounts payable 17,500 Increase in income tax payable 2,500 6,500 Net cash flow provided by operations 52,500 Cash Flow from Investing Activities Purchase of land (27,000) Net cash used in investing activities Purchase of building Purchase of equipment Cash Flow from Financing Activities Issuance of common stock at $5/share Borrowing at bank by issuance of note payable Net cash provided by financing activities Net decrease in cash balance Cash balance, January 1, 2022 Cash balance, December 31, 2022 (26,800) (66,000) (119,800) 5,500 36,800 42,300 (25,000) 54,500 29,500 Note: A building was acquired at a cost of $235,000. Cash of $32,300 was paid, and a mortgage of $202,700 was given for the balance. Based on the data supplied, prepare the December 31, 2022, balance sheet for the corporation. Note: A building was acquired at a cost of $235,000 Cash of $32,300 was paid, and a mortgage of $202.700 was given for the balance. Based on the data supplied, prepare the December 31, 2022, balance sheet for the corporation. KNOTTING COMPANY Balance Sheet Current Assets December 31, 2022 Assets Total Current Assets Property, Plant, and Equipment Net book value of Building Net Book Value of Equipment Total Property, Plant, and Equipment Total Assets Liabilities and Stockholders' Equity Current Liabilities Total current liabilities Long-term Liabilities Total Liabilities Stockholders' Equity Total Stockholders' Equity Total Liabilities and Stockholders' Equity