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, 2010

Assets

Liabilities

Cash

$15,000

Accounts payable

$20,000

Supplies

8,000

Accounts receivable

(8,500)

Equipment

46,000

Mendez, Capital

67,500

Mendez, Drawing

10,000

Total liabilities and

Total assets

$79,000

owner’s equity

$79,000

Instructions

Prepare a correct balance sheet.