The comprehensive entry for this business summarizing the changes in assets and liabilities from its sales and expenses for the year is as follows:
|
Cash |
$280,000 |
|
Accounts Receivable |
$825,000 |
|
Inventory |
$375,000 |
|
Prepaid Expenses |
$25,000 |
|
Accounts Payable |
$955,000 |
|
Accrued Expenses Payable |
$475,000 |
|
Accumulated Depreciation |
$390,000 |
|
Owners’ Equity — Retained Earnings |
$875,000 |
For the business’s board of directors, prepare a schedule of changes in assets and liabilities that summarizes the effects on the business’s financial condition from its profit for the year.