The adjusted trial balance columns of Falcetto Company's worksheet for the year ended December 31, 2010, are as follows.

Debit Credit

Cash 14,500

Accumulated Depreciation 18,000

Accounts Receivable 11,100

Notes Payable 25,000

Merchandise Inventory 29,000

Accounts Payable 10,600

Prepaid Insurance 2,500

Larry Falcetto, Capital 81,000

Store Equipment 95,000

Sales 536,800

Larry Falcetto,Drawing 12,000

Interest Revenue 2,500

Sales Returns and Allowances 6,700

673,900

Sales Discounts 5,000

Cost of Goods Sold 363,400

Freight-out 7,600

Advertising Expense 12,000

Salaries Expense 56,000

Utilities Expense 18,000

Rent Expense 24,000

Depreciation Expense 9,000

Insurance Expense 4,500

Interest Expense 3,600

673,900

Please create a balance sheet from the information above, please give an explanation