Current liabilities

Accounts payable 88,000

Bank overdraft 35,000

Notes payable

Trade 114,000

Bank 60,000

Officers 40,000

Customers accounts with credit balance 3,600

Advance from customers 6,000

Withholding tax payable 2,600

Estimated liability on product warranties 14,400

Estimated liability from product malfunction 4,800

Current portion of installment notes payable 20,000

Total current liabilities 388,400

1. Raw materials 114,000

Notes payable 114,000

2. Marketable secuties 60,000

Notes payable - bank 60,000

Marketable securities 80,000

mortgage payable 80,000

3. Demand 40,000

Notes payable - officers 40,000

4. Raw materials 88,000

Accounts payable 88,000

5. Cash in bank 35,000

bank overdraft 35,000

6. Retained earnings 48,000

Retained earnings appropriated 48,000

7. Withholding tax expenses 2,600

Withholding tax payable 2,600

8. Cash 6,000

Advances from customer 6,000

9. Equipment 40,000

cash 20,000

Notes payable 20,000

10. Cash 3,600

customers accounts credit 3,600

11. Merchandised inventory 14,400

Estimated liability on product warranties 14,400

12. Loss of products 4,800

Estimated liability from product malfunction 4,800

13. Insurance expense 20,000

Cash surrender value 80,000

Gain on life insurances 60,000