The following financial statements are available for Sherwood Real Estate Company:

Sherwood Company is using these financial statements to entice investors to buy stock in the company. However, a recent FBI investigation revealed that the sale of real estate was a fabricated transaction with a fictitious company that was recorded to make the financial statements look better. The sales price was $5,000,000 with a zero cash down payment and a $5,000,000 receivable. Prepare financial statements for Sherwood Company showing what its total assets, liabilities, stockholders€™ equity, and income really are with the sale of real estateremoved.

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Balance Sheet Assets Liabilities Cash Receivable from sale of S1,300 Accounts payable S 100,000 6,000,000 Mortgage payable real estate Interest receivable Real estate properties 5,000,000 Total liabilities S 6,100,000 180,000 6,000,000 Stockholders' Equity Capital stock Retained earnings Total stockholders' equity Total liabilities and S 10,000 5,071,300 5,081.300 Total assets $11,181,300 stockholders' equity S11,181,300 ·Interest Receivable applies to Receivable from sale of real estate. Income Statement Gain on sale of real estate Interest income Total revenues Expenses Net income $3,200,000 180,000 S3,380,000 1.200,000 2,180,000 Interest Income applies to Receivable from sale of real estate.