https://file.aiquickdraw.com/mathbot/file/1728484166149g9f3km3h.jpg

Let's break down the data in the image you uploaded and organize it into a balance sheet.

### Categories of a Balance Sheet:
1. **Assets:** This includes anything the company owns, such as cash and equipment.
2. **Liabilities:** This includes debts or obligations, such as loans payable and accounts payable.
3. **Equity:** This includes the owner's capital and retained earnings.

### Given Data:
- **Assets:**
  - Cash: $25,000
  - Equipment: $50,000
  - Total Assets: $75,000

- **Liabilities:**
  - Loans Payable: $30,000
  - Accounts Payable: $15,000
  - Total Liabilities: $45,000

- **Equity:**
  - Owner's Capital: $40,000
  - Retained Earnings: $20,000
  - Total Equity: $60,000

### Balance Sheet Format:

**Assets:**
1. Cash: $25,000
2. Equipment: $50,000  
   **Total Assets**: $75,000

**Liabilities:**
3. Accounts Payable: $15,000
4. Loans Payable: $30,000  
   **Total Liabilities**: $45,000

**Equity:**
5. Owner's Capital: $40,000
6. Retained Earnings: $20,000  
   **Total Equity**: $60,000

The balance sheet balances because:  
**Total Assets ($75,000) = Total Liabilities + Equity ($45,000 + $60,000 = $75,000).**

Would you like further clarification or details on any part of this process?

Here are 5 related questions to deepen understanding:
1. Why is it important for a balance sheet to balance (assets = liabilities + equity)?
2. What might cause the total liabilities and equity to not match the assets?
3. How do retained earnings differ from owner's capital?
4. Why is equipment considered an asset and not an expense?
5. How do loans payable impact the financial health of a company?

**Tip:** Always ensure that every balance sheet equation remains balanced to reflect accurate financial health.

DEF Industries is preparing its balance sheet to show its financial position at the end of the year. The company has collected information on its assets, liabilities, and equity. They have listed the total cash on hand and equipment values under assets, the total loans payable and accounts payable under liabilities, and the owner's capital and retained earnings under equity. Arrange the following items in the correct order and calculate the totals for each category.

Learn how to arrange items on a balance sheet by analyzing the assets, liabilities, and equity for DEF Industries. This example breaks down key financial components such as cash, equipment, loans payable, and retained earnings to maintain the accounting equation: Assets = Liabilities + Equity.

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