Obtain all data necessary from the worksheet prepared for The Game Place in Problem 12.6B at the end of Chapter 12. Then follow the instructions to complete this problem.

In Problem 12.6B

Cash ......................34,465

Accounts Receivable............... 1,669

Prepaid Advertising ............... 480

Supplies ................... 425

Merchandise Inventory .............18,500

Store Equipment .................30,000

Accumulated Depreciation—Store Equipment ...... 3,000

Office Equipment ............... 4,800

Accumulated Depreciation—Office Equipment .... 1,500

Notes Payable, due 2017 .............22,500

Accounts Payable ............... 5,725

Wages Payable

Social Security Tax Payable

Medicare Tax Payable

Unearned Seminar Fees ............. 7,500

Interest Payable

Matt Huffman, Capital .............43,000

Matt Huffman, Drawing ..............18,000

Income Summary

Sales ..................... 163,660

Sales Discounts ................ 180

Seminar Fee Income

Purchases ...................92,500

Purchases Returns and Allowances ......... 770

Freight In ................... 275

Rent Expense..................26,400

Wages Expense ................18,000

Payroll Taxes Expense ............. 1,811

Depreciation Expense—Store Equipment

Depreciation Expense—Office Equipment

Advertising Expense

Supplies Expense

Interest Expense ................ 150

INSTRUCTIONS

1. Prepare a classified income statement for the year ended December 31, 2016. The company does not classify its operating expenses as 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 year.

3. Prepare a classified balance sheet as of December 31, 2016.

Analyze: What is the amount of working capital for The Game Place?