Question

QS 4-13 Preparing a classified balance sheet for a merchandiser LO P4 Clear Water Co. reports the following balance sheet accounts as of December 31. ook Ruildings Accounts receivable Land Merchandise inventory Accounts payable Cash Notes payable (due in 7 years) office supplies Common stock Retained earnings Wages payable $ 25,000 2,000 11,000 7.000 5,000 8,000 30,000 1,000 10,000 6.000 3,000 nces Required: Prepare a classified balance sheet. Clear Water Co. Balance Sheet December 31 Assets Current assets Total current assets 0

Answer 1

Answer
Balance Sheet
Dec-31
Assets
	Amount $	Amount $
Current assets:
Cash	$      8,000
Accounts receivable	$      2,000
Merchandise Inventory	$      7,000
Office supplies	$      1,000
Total current assets		$    18,000
Plant assets:
Land	$    11,000
Buildings	$    25,000
Total plant assets		$    36,000
Total Assets		$    54,000
Liabilities & Equity:
	Amount $	Amount $
Current liabilities:
Accounts payable	$      5,000
Wages payable	$      3,000
Total current liabilities		$      8,000
Long-term liabilities:
Notes payable	$    30,000
Total long-term liabilities		$    30,000
Total liabilities		$    38,000
Equity:
Common Stock	$    10,000
Retained Earnings	$      6,000
Total equity		$    16,000
Total liabilities and equity		$    54,000