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MUSIC MART, INC.
BALANCE SHEET AS OF ______
Assets Liabilities and Owners’ Equity
Current assets: Current liabilities:
Cash $25,636 Notes payable $ 6,500
Accounts receivable 2,620 Accounts payable 5,000
Inventory 4,700 Total current liabilities 11,500
Prepaid insurance 1,224
Total current assets 34,180 Other liabilities:
Mortgage payable 9,000
Total liabilities 20,500
Owners’ equity
Property: Paid in capital 25,000
Land 12,000 Retained earnings 680
Total assets $46,180 Total liabilities
and owners’ equity
$46,180
Answers to Questions:
1. Increase Inventory 5,000; increase Accounts Payable 5,000
2. & ...