Financial items for George Karatsis IT Services on 31 May 2016 are presented below in alphabetical order.

Accounts payable Accounts receivable Building Cash at bank

$64000 70000 520000 61000

Land Mortgage payable Office equipment Office supplies

$250000 710000 180000 34000

Required:

A. Prepare a balance sheet similar to the one in figure 2.2. (Note that a major item is missing in the list.)

B. Reformat the statement to present it in narrative form as in figure 2.3.