Knotting Company was formed and began business on January 1, 2022, when J. T. Wood transferred merchandise inventory with a value of $60,000, cash of $55,000, accounts receivable of $60,000, and accounts payable of $35,000. 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				50,000
Adjustments
Depreciation of building	5,000
Depreciation of equipment	6,000
Increase in accounts receivable	(15,000	)
Increase in inventory	(8,000	)
Increase in prepaid insurance	(800	)
Increase in accounts payable	17,000
Increase in income tax payable	2,500			6,700
Net cash flow provided by operations				56,700
Cash Flow from Investing Activities
Purchase of land	(30,000	)
Purchase of building	(25,000	)
Purchase of equipment	(60,000	)
Net cash used in investing activities				(115,000	)
Cash Flow from Financing Activities
Issuance of common stock at $5/share	5,000
Borrowing at bank by issuance of note payable	40,000
Net cash provided by financing activities				45,000
Net decrease in cash balance				(13,300	)
Cash balance, January 1, 2022				55,000
Cash balance, December 31, 2022				41,700

Note: A building was acquired at a cost of $250,000. Cash of $25,000 was paid, and a mortgage of $225,000 was given for the balance.

Based on the data supplied, prepare the December 31, 2022, balance sheet for the corporation.

KNOTTING COMPANY Balance Sheet December 31, 2022 Assets Current Assets $ 0 Total Current Assets Property, Plant, and Equipment Net book value of Building 0 0 Net Book Value of Equipment Total Property, Plant, and Equipment Total Assets $ 0 $ 0 Liabilities and Stockholders' Equity Current Liabilities $ 0 Total Current Liabilities Long-term Liabilities $ $ 0 Total Liabilities Stockholders' Equity $ 0 Total Stockholders' Equity Total Liabilities and Stockholders' Equity $ 0