13. The company began the year with the following balances: Sales $25,000 Accounts Receivable $12,000 Inventory $15,000 Accounts Payable $3,000 S/T Notes Payable $20,000 Interest Payable $1,000 Taxes Payable $2,000 Common Stock $26,000 A. Record journal entries for the following transactions. B. Determine the balance for each account. C. Prepare a balance sheet. a. Collected $6,000 owed from customers b. Purchased $13,000 of inventory on account c. Repaid $5,000 to the bank d. Paid the total amount owed for interest e. Paid one half of the total amount owed to suppliers f. Purchased office supplies on account for $200 (not used this period) g. Received $2,500 from a customer who will be shipped inventory next month h. Paid the entire amount owed to the government for income taxes i. Sold part of the company to investors for $30,000 j. Invested $25,000 of excess cash in a short term investment

Definition Definition Financial statement that provides a snapshot of an organization's financial position at a specific point in time. It summarizes a company's assets, liabilities, and shareholder's equity, detailing what the company owns, what it owes, and what is left over for its owners. The balance sheet serves as a crucial tool to assess the financial health and stability of a company, as well as to help management make informed decisions about its future investments and financial obligations.