Preparing a classified balance sheet Required Use the following information to prepare a classified balance sheet for

Question:

Preparing a classified balance sheet

Required

Use the following information to prepare a classified balance sheet for Little Co. at the end of 2010.

Accounts receivable ...... $42,500

Accounts payable ........ 12,500

Cash ............. 16,230

Common stock .......... 40,000

Long-term notes payable ...... 27,000

Merchandise inventory ...... 31,000

Office equipment (net) ...... 27,000

Retained earnings ........ 40,430

Prepaid insurance ......... 3,200

Balance Sheet
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial...