Question

complete the balance sheet below with the following information on 12/31/2025:
cash=70,000
accounts payable=60,000
accounts receivable=30,000
common stock=120,000
equipment=175,000
retained earnings=95,000
balance sheet
as of the last day of: 2025
assets:
total assets 0
liabilities:
total liabilities 0
equity:
total equity 0
total liabilities and equity 0

Explanation:

Step1: Calculate Total Assets

Assets include Cash, Accounts Receivable, and Equipment. So, sum these values: $70,000 + 30,000 + 175,000$.
$70000 + 30000 + 175000 = 275000$

Step2: Calculate Total Liabilities

Liabilities here is only Accounts Payable, so it's $60,000$.

Step3: Calculate Total Equity

Equity includes Common Stock and Retained Earnings. Sum these: $120,000 + 95,000$.
$120000 + 95000 = 215000$

Step4: Verify Accounting Equation (Assets = Liabilities + Equity)

Check if $275,000 = 60,000 + 215,000$.
$60000 + 215000 = 275000$, which holds.

Answer:

• Total Assets: $\boldsymbol{275,000}$
• Total Liabilities: $\boldsymbol{60,000}$
• Total Equity: $\boldsymbol{215,000}$
• Total Liabilities and Equity: $\boldsymbol{275,000}$ (matches Total Assets)