Using the information shown in the picture, prepare a classified balance sheet for Thompson Company as of December 31, 2019 that includes the following subcategories: Current assets, Investments, Property Plant & Equipment, Intangible assets, Current liabilities, Long-term liabilities and Owner’s Equity to answer the question that follows.

Required:

Prepare the Classified Balance Sheet and show your complete working.

 

Transcribed Image Text:

Prepaid Rent 200 Franchise 3,600 Cash 400 Land 4,000 Marketable Securities 800 Investment in Land Held for future use 5,400 Revenues Received in Advance 800 Inventory 6,000 Accounts Receivable 1,600 Notes Payable (in two years) 8,000 Accumulated Depreciation- Building 2,000 Building 16,000 Accounts Payable 3,200 Jane Thompson, Capital 24,000 Prepaid Rent 200 Franchise 3,600 Cash 400 Land 4,000 Marketable Securities 800 Investment in Land Held for future use 5,400 Revenues Received in Advance 800 Inventory 6,000 Accounts Receivable 1,600 Notes Payable (in two years) 8,000 Accumulated Depreciation- Building 2,000 Building 16,000 Accounts Payable 3,200 Jane Thompson, Capital 24,000