Using the adjusted trial balance below, for FairQuest Equipment Servicing for the year ended August 31, 2020, prepare an income statement, statement of changes in equity, and classified balance sheet. The owner made a $50,000 investment into the business during the year. The investment in Nova shares is expected to be held for the long term.

Analysis Component: Why might FairQuest Equipment Servicing be tempted to report the investment in Nova shares as a current asset on the August 31, 2020, balance sheet?

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No. Account Debit Credit $ 7,500 101 Cash 106 Accounts receivable 16,000 Interest receivable. 109 280 Office supplies. 124 141 1,700 Investment in Nova shares. 35,000 81,000 161 Furniture. Accumulated depreciation, furniture. $ 21,400 162 16,500 193 Franchise. Accounts payable. Notes payable, due in 7 months. Unearned servicing revenue Long-term notes payable*. Jade Fairquest, capital.. Jade Fairquest, withdrawals. Equipment servicing revenue. 4,300 201 205 3,200 230 5,000 251 31,000 301 61,400 302 4,000 171,080 403 409 Interest income. 2,600 601 2,060 Depreciation expense, Wages expense.. Insurance expense furniture. 623 116,000 637 16,680 Telephone expense. Utilities expense. 688 2,800 690 460 $299,980 $299,980 Totals.. "An $18,000 payment will be made on the long-term notes payable during the year ended August 31, 2021.