Question

Clear Water Co. reports the following balance sheet accounts as of December 31.

Buildings	$	37,500
Accounts receivable		2,500
Land		16,000
Merchandise inventory		8,000
Accounts payable		5,500
Cash		9,000
Notes payable (due in 7 years)		40,000
Office supplies		2,000
Common stock		15,000
Retained earnings		11,000
Wages payable		3,500

Required:
Prepare a classified balance sheet.

Answer 1

ASSETS			LIABILITIES AND EQUITY
Current assets			Current liabilities
	Trade receivables	$     2,500.00		Trade and other payable	$    5,500.00
	Cash and cash equivalents	$     9,000.00		Wages Payable	$    3,500.00
	Merchandise Inventories	$     8,000.00	Total current liabilities		$    9,000.00
	OfficeSupplies	$     2,000.00
Total current assets		$   21,500.00	Long-term liabilities
				Notes Payable	$ 40,000.00
Fixed assets			Total non-current liabilities		$ 40,000.00
	Buildings	$   37,500.00
	Land	$   16,000.00	Total liabilities		$ 49,000.00
Total non-current assets		$   53,500.00
			Shareholders’ Equity
Total assets		$   75,000.00		Common Stock	$ 15,000.00
				Retained earnings	$ 11,000.00
			Total equity		$ 26,000.00
			Total liabilities and equity		$ 75,000.00