Safety-First Company completed all of its October 31, 2023, adjustments in preparation for preparing its financial statements, which resulted in the following trial balance.

Other information:1. All accounts have normal balances.2. $26,400 of the note payable balance is due by October 31, 2024.The final task in the year-end process was to assess the assets for impairment, which resulted in the following schedule.

Required1. Prepare the entry (entries) to record any impairment losses at October 31, 2023. Assume the company recorded no impairment losses in previous years.2. Prepare a classified balance sheet at October 31, 2023.

Analysis Component:What is the impact on the financial statements of an impairment loss?

Transcribed Image Text:

Account Accounts payable Accounts receivable Accumulated depreciation, building Accumulated depreciation, equipment Accumulated depreciation, furniture Allowance for doubtful accounts Building Cash Balance $11,220 19,800 79,200 37,400 20,900 880 136,400 11,000 Equipment 90,200 Expenses, including cost of goods sold 761,200 Furniture 50,600 Land 105,600 Merchandise inventory Note payable Sales Tarifa Sharma, capital Unearned revenues 35,200 85,800 904,200 62,480 7,920