Razul took the proceeds from dissolving the partnership and purchased a corporation selling electrical parts 5 used for large production companies. He employs several people, but is looking to expand his operations further. In addition to expanding the sales of electrical parts, he also wants to start selling heating, ventilation and air conditioning (HVAC) parts and machinery through a separate division of the company called 'HVAC Parts & Machinery.' Currently, Razul owns all the shares in the corporation. To raise the needed cash, he decides to offer common and preferred shares for sale to investors starting in 2021. Below is the balance sheet at the end of 2020. Holister Electric Inc. Balance Sheet As at December 31, 2020 Assets Cash Accounts Receivable Liabilities $25,000 Accounts Payable $12,200 13,500 Unearned Revenue 5,200 Prepaid Insurance 3,600 Bank Loan 26,000 Inventory 72,000 Total Liabilities 43,400 Property, Plant & Equipment 210,000 Shareholders' Equity Accumulated Depreciation -25,000 Common Shares - 90,000 issued 90,000 Retained Earnings 165,700 Total Shareholder's Equity 255,700 Total Assets $299,100 Liabilities & Owner's Equity $299,100