* Please if you subtract or add values to get an answer for a spot on the balance sheet please include what you subtracted so I can understand what is going on and learn the steps. *

Arnold Incorporated owns apartments in Dallas, TX. On December 31, 2020, their following unadjusted account balances were:

- Cash $4,600

- Rent Receivable $32,500

- Prepaid Insurance $60,000

- Land $274,000

- Buildings $4,560,000

- Accounts Payable $57,600

- Notes Payable (Long Term) $2,000,000

- Common Stock $1,500, 000

- Retained Earnings, 12/31/2019 $71,712

- Accumulated Depreciation (Buildings) $1,224,988

- Intangible Assets $26,100

The following information needs to be accounted for in adjusting the entries before the information can be included on the balance sheet:

a. $3,800 of apartment rent is unrecorded in the year-end data above *rent receivables* and needs to be accounted for.

b. An audit of supplies reveals that $1,400 is unused and on-hand * has not been recorded* on December 31 and needs to be accounted for.

c. Examination of the Prepaid Insurance reveals that $12,000 was accounted for in 2018 and was not applicable for this year. d. Wages in the amount of $6,100 are unpaid as of December 31 and need to be accounted for.

e. 9% interest *interest payable* is unpaid and owed on half of the notes payable as of December 31 and needs to be accounted for.

Question #1) Create a balance sheet for Realty Incorporated for December 31, 2020.

* Please if you subtract or add values to get an answer for a spot on the balance sheet please include what you subtracted so I can understand what is going on and learn the steps. *