Problem II: The following is a post-closing trial balance for the Sepia Paint Corporation at December 31, 2021, the end of the company's fiscal year: Account Title Debits Credits Cash $ 80,000 Accounts receivable 200,000 Allowance for uncollectible accounts $ 20,000 Inventory 300,000 Prepaid expenses 30.000 Notes receivable (due in one month) 60.000 Investment in equity securities 50,000 Land 120,000 Building 550,000 Machinery 500,000 Accumulated depreciation-buildings 200,000 Accumulated depreciation-machinery 250,000 Patent (net of amortization) 50,000 Accounts payable 170,000 Salaries payable 40,000 Interest payable 10,000 Notes payable 100,000 Bonds payable (due in 10 years) 500,000 Common stock (no par) 400,000 Retained earnings 250,000 Totals $ 1,940,000 $ 1,940,000 The company intends to hold the $50,000 investment in equity securities of other corpora- tions for at least three years. The $100,000 note payable is an installment loan $10,000 of the principal, plus interest, is due on each July 1 for the next 10 years. At the end of the year, 100,000 shares of common stock were issued and outstanding. The company has 500,000 shares of common stock authorized Required: Prepare a classified balance sheet for the Sepia Paint Corporation at December 31, 2021 Solution