Answer:
Karol Company
Balance Sheet as at December 31, 2017
$
Assets
Current Assets
Cash 22,000
Accounts receivable 71,000
Total Assets 93,000
Equity and Liability
Equity
Common stock 18,000
Retained earnings 10,000
Total Equity 28,000
Liabilities
Current Liabilities
Accounts payable 65,000
Total Equity & Liabilities 93,000
Explanation:
Balance sheet is the actual presentation of accounting equation which determines that All the asset is equal to the sum of equity and liabilities. It means all the asset made in the company are financed either by equity or liabilities. There are two section in the balance sheet:
Assets section, which accumulates all the assets account balance and their contra accounts as well.
Equity and Liabilities section, which sum up all the account balances of equity and liabilities accounts.
Total of Assets and The total of Equity and Liabilities must be equal.
