Answer and Explanation:
The preparation of the balance sheet as on May 31, 20Y6 is as follows:
Assets
Cash $252,875
Accounts receivable $65,950
Supplies $11,305
Land $301,000
Total Assets $631,130
Liabilities
Accounts payable $23,555
Common Stock $135,000
Retained earnings (see working below) $472,575
Total Liabilities $631,130
Working note
For retained earnings first determine the net loss or net income as the case may be
= Fees earned - office expense - miscellaneous expense - wages expense
= $942,135 - $216,690 - $18,845 - $452,225
= $254,375
Now the ending retained earning balance is
= opening retained earning balance + net income - dividend paid
= $254,000 + $254,375 - $35,800
= $472,575
