Teresa's Bicycle Shop

Balance Sheet

December $31,2024$

Current Assets Current Liabilities

Cash $ $780,000$ Accounts Payable $ $65,000$

Accounts Receivable $3,600$ Wages Payable $5,500$

Inventory $67,000$ Total Current Liabilities $ $70,500$

Prepaid Insurance $$12,000$

Total Current Assets $ $862,600$ Long$-$Term Liabilities

Bonds Payable $15,000$

Property, Plant, Equipment $$360,000$ Total Liabilities $ $85,500$

Less: Accumulated Depreciation $(95,000)$ Stockholder's Equity

Net Property, Plant, and Equipment $$265,000$ Common Stock $10,000$

Retained Earnings $ $1,032,100$

Total Assets $ $1,127,600$ Total Liabilities and Equity $ $1,127,600$

Consider the following and create a budgeted balance sheet for December $31,2025$

$1.$ Net Income $ $210,000$

Adjust the appropriate equity account for net income.

$2.$ Inventory $85,000$

$3.$ Prepaid Insurance $15,000$

$4.$ Depreciation Expense $9,800$

Be sure to adjust accumulated depreciation.

$5.$ Capital expenditures $68,000$

$6.$ Accounts payable $$80,000$

$7.$ Dividends paid $$30,000$

Adjust retained earnings to get your balance sheet to balance.