Supreme Videos, Inc., produces short musical videos for sale to retail outlets. The company's balance sheet accounts as of January 1, the beginning of its fiscal year, are given below: Supreme Videos, Inc. Balance Sheet January 1 Assets Current assets: $67,000 Cash 106,000 Accounts receivable Inventories: $34,000 Raw materials (film, costumes) Videos in process 30,000 85,000 149,000 Finished videos awaiting sale Prepaid insurance 9,800 331,800 Total current assets 738,000 Studio and equipment 214,000 524,000 Less accumulated depreciation $855,800 Total assets Liabilities and Stockholders' Equity $157,800 Accounts payable $424,000 Capital stock 698,000 Retained earnings 274,000 Total liabilities and stockholders' equity $855,800