The following information is from the June 30, 2011, post-closing trial balance of Beauty Supplies Corporation.

REQUIRED

1. From the information provided, prepare a classified balance sheet for Beauty Supplies Corporation.

2. As a user of the classified balance sheet, what key elements of other financial statements would be essential to understanding Beauty Supplies Corporation’s performance?

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Account Name Debit Credit Cash Short-Term Investments Notes Receivable Accounts Receivable Merchandise Inventory Prepaid Rent Prepaid Insurance Sales Supplies Office Supplies Deposit for Future Advertising Building, Not in Use Land Delivery Equipment Accumulated Depreciation-Delivery Equipment Trademark Accounts Payable Salaries Payable Interest Payable Long-Term Notes Payable Common Stock (S1.10 par value) Paid-In Capital in Excess of Par Value Retained Earnings 16,000 16,500 5,000 138,000 72,500 800 2,400 640 220 1,840 24,800 11,700 20,600 S 14,200 2,000 57,300 2,600 920 40,000 11,000 80,000 106,980