Razorback Sports Inc. was formed in 2019 by Austin Williams and Tyler Jacobs. Austin and Tyler officially incorporated their store on March 12, 2019. Razorback Sports sells all kinds of sports-related products including equipment, uniforms and athletic shoes. Austin owns 60% of the outstanding common stock of Razorback Sports and Tyler owns the remaining 40%.

Razorback Sports is located at 123 College Ave, Fayetteville, AR 72701. Its employer identification number is 29-5748859 and its business activity code is 451110. Razorback Sports uses the accrual method of accounting and has a calendar year-end.

The officers of Razorback Sports and their Social Security numbers are:

Name Title SS number Austin Williams CEO/President 123-45-6789 Tyler Jacobs Executive VP 789-12-3456 Kellie Francis Operations VP 321-54-9876 Jason Roberts Secretary 987-65-4321

A trial balance for the corporation is attached. Additional information is presented below. Amount 1. Razorback Sports has a capital loss carry over from last year of 3,425 2. Interest income: a. From a City of Fayetteville bond that was used to fund new police station 4,692 b. From a U.S. Treasury bond 7,398 c. From a money market account 8,460 3. Razorback Sports sold equipment. a. Selling price 12,193 b. Original purchase price 16,851 c. Total book depreciation on the equipment 10,070 d. Total tax depreciation on the equipment 9,179 4. Razorback Sports' dividend income came from Cardinal Inc. Razorback Sports owned 25,000 shares of the stock in Cardinal at the beginning of the year. This represented 15% of the Cardinal outstanding stock. 5. On July 22, 2023 Razorback Sports sold 2,500 shares of its Cardinal Inc. stock. a. Selling price 49,320 b. Razorback originally purchased these shares on April 24, 2019 32,880 c. After the sale, Razorback Sports owned 12.5% of Cardinal Inc. 6. Interest expense: a. From the mortgage on Razorback Sports' building 83,296 From loan used to purchase City of Fayetteville bonds 1,644 The business expense limit does not apply to Razorback Sports 7. Wages to non-officers are 582,250 8. Pension expense is the same for both book and tax purposes. 9. Miscellaneous expenses include premiums paid on term life insurance policies on the lives of Austin and Tyler (Razorback Sports is the beneficiary of the life insurance policies). 2,740 10. Miscellaneous expenses include parking fines issued by the City of Fayetteville 2,493 11. The corporation uses MACRS depreciation for tax purposes. The corporation purchased all of its equipment on July 1, 2019. Razorback Sports took the maximum amount of 179 depreciation (no bonus depreciation). The equipment is all 7 year property. a. Cost of the equipment 1,918,000 12. Accounts receivable written off by Razorback Sports during the year were 20,550 13. On December 1, 2023 Razorback Sports paid a dividend to its shareholders of 110,970 14. Razorback Sports made four equal estimated tax payments of 54,800 a. If it has overpaid its federal tax liability, Razorback would like to receive a refund. 15. The corporation paid the following compensation to its officers: Austin Williams 472,650 Tyler Jacobs 390,450 Kellie Francis 198,650 Jason Roberts 178,100 16. All officers devote 100% of their time to the business and all officers are U.S. citizens.

Accounts payable				369,900
Accounts receivable		823,507
Accumulated depreciation				513,750
Advertising expense		73,980
Allowance for doubtful accounts				72,542
Bad debt expense		47,950
Capital gains				16,440
Capital stock (common)				1,233,000
Cash		463,197
Charitable contributions		34,250
Compensation expense		1,822,100
Cost of goods sold		1,106,960
Depreciation expense		27,400
Dividends (paid)		110,970
Dividends (received)				21,920
Entertainment expense		4,795
Equipment		1,918,000
Federal income tax expense		343,596
Gain from disposition of fixed assets				5,412
Interest expense		84,940
Interest income				20,550
Inventory		2,192,000
Investments in state & local bonds		191,800
Investments in stock		376,750
Investment in U.S. government bonds		95,900
Land		3,041,400
Maintenance expense		34,250
Meals expense		2,398
Miscellaneous expense		56,033
Mortgage payable				1,336,024
Other assets		342,500
Other current liabilities				161,660
Other liabilities				252,217
Other taxes expense		76,720
Pension plans expense		57,540
Professional services expense		43,840
Property tax expense		61,650
Retained earnings (1/1/2023)				4,753,900
Sales				4,823,017
Sales returns & allowance		52,060
State income tax expense		82,200
Supplies expense		11,645
		$13,580,331		$13,580,331

From the facts given make a balance sheet.