Problem

Preparing classified financial statements.Quality Hardwoods Company distributes hardwood p...

Preparing classified financial statements.

Quality Hardwoods Company distributes hardwood products to small furniture manufacturers. The adjusted trial balance data given below is from the firm’s worksheet for the year ended December 31, 2016.

INSTRUCTIONS

1. Prepare a classified income statement for the year ended December 31, 2016. The expense accounts represent warehouse expenses, selling expenses, and general and administrative expenses.
2. Prepare a statement of owner’s equity for the year ended December 31, 2016. No additional investments were made during the period.
3. Prepare a classified balance sheet as of December 31, 2016. The mortgage and the loans extend for more than a year.

ACCOUNTS