Your friend is the bookkeeper for AHCo and has been trying to get the balance sheet of AHCo to balance. AHCos balance sheet is as follows.

AHCo

Balance Sheet

December 31, 2019

Assets Liabilities

Cash $7,400 Accounts payable $25,000

Supplies 7,100 Accounts receivable (19,500)

Equipment 45,000 Owners capital 63,200

Owners drawings 9,200 Total liabilities and

Total assets $68,700 owners equity $68,700

Instructions

Prepare a correct balance sheet.