Question

2 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. ints eBook Buildings Accounts receivable Land Merchandise inventory Accounts payable Cash Notes payable (due in 7 years) Office supplies Common stock Retained earnings Wages payable $ 70,000 3,800 29,000 12,600 6,8ee 11,6ee 66, see 4,600 28,888 24, see 4,820 Hint Ask Required: Prepare a classified balance sheet. References Clear Water Co. Balance Sheet December 31 Assets Current assets Total current assets Plant assets Total plant assets Total assets Liabilities Current liabilities Total current liabilities Long-term liabilities Total liabilities Equity Total equity Total liabilities and equity

Answer 1

                                         Classified Balance sheet

                                                    Clear Water CO.

   Balance Sheet

                   December 31               

Assets	Amount ($)	Amount ($)
1.Current Assets
a. Accounts Receivable	3,800
b. Merchandise inventory	10,600
c. Cash	11,600
d. Office Supplies	4,600
Total Current Assets I	30,600
2. Plant Assets
a. Buildings	70,000
b. Land	29,000
Total Plant Assets II	99,000
Total Assets (I+II)		129,600
.                                               Liabilities
1. Current Liabilities
a. Accounts Payable	6,800
b. Wages Payable	4,800
Total Current Liabilities	11,600
2. Long Term Liabilities
a. Notes payable	66,000
Total Liabilities I	77,600
Equity
1. Common stock	28,000
2. Retained Earnings	24,000
Total Equity II	52,000
Total Liabilities And Equity ( I+II)		129,600

Note:- Notes payable is due in 7 years, so it is considered as long term liability