Answer:
China Tea Company
<u>Classified Balance Sheet as at December 31, 2021</u>
ASSETS
<u>Non Current Assets</u>
Equipment                                                               $330,000
Accumulated depreciation                                    ($127,000) 
Total Non - Current Assets                                    $203,000
<u>Current Assets</u>
Prepaid rent                                                                $7,000
Supplies                                                                    $27,000
Accounts receivable                                               $158,000
Cash                                                                          $ 16,000
Total Current Assets                                              $208,000
TOTAL ASSETS                                                        $411,000
EQUITY AND LIABILITIES 
EQUITY
Common stock                                                      $180,000
Retained Earnings                                                 $361,700
TOTAL EQUITY                                                      $541,700
LIABILITIES
<u>Non Current Liabilities</u>
Notes payable (due in two years)                         $30,000
Total Non - Current Liabilities                               $30,000
<u>Current Liabilities</u>
Accounts payable                                                  $19,000
Salaries payable                                                      $3,800
Interest payable                                                       $1,500
Total Current Liabilities                                         $24,300
TOTAL LIABILITIES                                               $54,300
TOTAL EQUITY AND LIABILITIES                      $596,000
Explanation:
A Balance Sheet show the Assets, Liabilities and Equity Balances as at the Reporting date
Retained Earnings Balance = Opening Balance + Profit for the year - Dividends.
where,
Profit for the Year = Sales - Expenses
                               = $470,000 - ($78,000 + $18,000 + $33,000 + $2,000 + $42,000)
                               = $297,000 
therefore,
Retained Earnings Balance = $94,700 + $297,000  - 30,000 = $361,700