Your firm has been hired to help several small businesses with their year-end financial statements.

1. Based on the following account balances, prepare the Marbella Design Enterprises balance sheet as of December 31, 2018:

Cash$30,250

Accounts payable28,500

Fixtures and furnishings 85,000

Notes payable15,000

Retained earnings 64,450

Accounts receivable 24,050 Inventory15,600

Equipment42,750

Accumulated depreciation on fixtures and furnishings12,500 Common shares (50,000 shares at $1)50,000

Long-term debt 25,000

Accumulated depreciation on equipment7,800

Marketable securities13,000

Income taxes payable7,500