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.