Mary Close is the bookkeeper for Mendez Company. Mary has been trying to get the balance sheet of Mendez Company to balance. Mendez’s balance sheet is shown below.

MENDEZ COMPANY

Balance Sheet

December 31, 2011

Assets

Liabilities

Cash

$15,000

Accounts payable

$20,000

Supplies

8,000

Accounts receivable

(8,500)

Equipment

46,000

Common stock

50,000

Dividends

10,000

Retained earnings

17,500

Total assets

$79,000

Total liabilities and

stockholders’ equity

$79,000

Instructions

Prepare a correct balance sheet.