On October 1, Natalie King organized Real Solutions, a new consulting firm. On October 31, the company's records show the following items and amounts.

Exercise 1-16 Preparing a balance sheet L.O. P2

On October 1, Natalie King organized Real Solutions, a new consulting firm. On October 31, the company's records show the following items and amounts.

Cash	$	2,000		Cash dividends	$	3,360
Accounts receivable		19,000		Consulting fees earned		21,000
Office supplies		4,250		Rent expense		3,780
Land		36,000		Salaries expense		8,400
Office equipment		28,000		Telephone expense		660
Accounts payable		7,500		Miscellaneous expenses		680
Common stock		77,630

Using the above information prepare an October 31 balance sheet for Real Solutions. (Be sure to list the assets and liabilities in order of their liquidity. Omit the "$" sign in your response.)

REAL SOLUTIONS Balance Sheet October 31
Assets
Cash	$ 2,000
Accounts receivable	19,000
Office supplies
Land
Office equipment
Total Assets	$ 89,250
Liabilities
Accounts payable	$ 7,500
Equity
Common stock	77,630
Retained earnings	4,120
Total equity	81,750
Total Liabilities and Equity	$ 89,250

Explanation:

REAL SOLUTIONS Income Statement For Month Ended October 31
Revenues:
Consulting fees earned				$	21,000
Expenses:
Salaries expense	$	8,400
Rent expense		3,780
Miscellaneous expenses		680
Telephone expense		660
Total expenses					13,520
Net income				$	7,480

REAL SOLUTIONS Statement of Retained Earnings For Month Ended October 31
Retained earnings, Oct. 1	$	0
Add: Net income		7,480
		7,480
Less: Cash dividends		3,360
Retained earnings, Oct. 31	$	4,120