Superior Hardwood 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, 2019.

INSTRUCTIONS

1. Prepare a classified income statement for the year ended December 31, 2019. 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, 2019. No additional investments were made during the period.

3. Prepare a classified balance sheet as of December 31, 2019. The mortgage payable extends for more than a year.

ACCOUNTS

Analyze:
What is the current ratio for this business?

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Debit Credit S 34,100 500 11,800 86,000 Cash Petty Cash Fund Notes Receivable, due 2020 Accounts Receivable Allowance for Doubtful Accounts Merchandise Inventory Warehouse Supplies Office Supplies Prepaid Insurance Land Building Accumulated Depreciation-Building Warehouse Equipment Accumulated Depreciation-Warehouse Equipment Delivery Equipment Accumulated Depreciation-Delivery Equipment Office Equipment Accumulated Depreciation-Office Equipment $ 6,000 234,000 2,860 1,420 10,200 46,000 178,000 54,000 37,000 17,400 51,000 19,600 25,000 12,000 Credit Notes Payable, due 2020 Charles Ronie, Capital (Jan. 1) 244,000 234,000 Purchases Returns and Allowances Warehouse Wages Expense Depreciation Expense-Warehouse Equipment Property Taxes Expense Depreciation Expense-Uffice Equipment 2,649,420 $2,649,420