Question

Exercise 2-05 These items are taken from the financial statements of Oriole Company at December 31, 2022. Buildings Accounts receivable Prepaid insurance Cash Eqpipment Land Insurance expense Depreciation expense Interest expense Common stock Retained earnings (January 1, 2022) Accumulated depreciation-buildings Accounts payable Notes payable Accumulated depreciation--equipment Interest payable Service revenue $93,104 11,088 2,816 10,419 72,512 53,856 686 4,664 2,288 52,800 35,199 40,128 8,360 82,368 16,474 3,168 12,936

Prepare a classified balance sheet. Assume that $11,968 pf the note payable will be paid in 2023. (List current assengs in order of liquidity and property, plant and equipment in order of land, buildings and equipment.)

Answer 1

Answer:

$ 10,419 11,088 2,816 $ 24,323 53,856 52,976 56,038 Oriole Company Balance Sheet December 31 2022 Assets Current assets Cash Account receivable Prepaid insurance Total current assets Property, Plant and Equipment Land Building $ 93,104 Less: Accumulated depreciation-building 40,128 Equipment 72,512 Less: Accumulated depreciation-equipment 16,474 Total assets Liabilities and Stock holder's Equity Current liabilities Account payable Notes payable Interest payable Total current liabilities Long-term liabilities Notes payable Total liabilities Stock holder's equity Common stock Retained earnings Total stock holder's equity Total liabilities and stock holder's equity 162,870 187,193 8,360 11,968 3,168 23,496 70,400 93,896 52,800 40,497 93,297 187,193

Working Note: Sales revenue $ 12,936 $ Insurance expense Depreciation expenses Interest expense Total expense 686 4,664 2,288 7,638 Net Income 5,298 Retained earning, Jan 1, 2022 Net income Retained earning, Dec 31, 2022 35,199 5,298 40,497