Wasago Is in Its First Year of Operation, and the Bookkeeper

Essay

Wasago is in its first year of operation, and the bookkeeper has prepared the following summary of all of their accounts and balances as at August 31, 2012.Prepare a proper balance sheet for Wasago
Corporation. $\begin{array}{llll}\text { Accounts payable } & 26,000 & \text { Investment by } \\\text { Accounts receivable } & 36,000 & \text { shareholders } & 25,000\\\text { Bank loan, short-term } & 12,000 & \text { Loans made to company } \\\text { Cash } & 2,000 & \text { by shareholders }\\\text { Income tax expense } & 7,500 & \text { Operating expenses } & 182,500 \\\text { Income taxes payable } & 7,500 & \text { Office equipment } & 45,000 \\\text { Insurance paid in advance } & 5,000 & \text { Sales revenues } & 212,500 \\\text { Inventory } & 30,000 & &\end{array}$