The following items are from the liability and shareholders' equity sections of Reitmans (Canada) Limited's January 30,

Question:

The following items are from the liability and shareholders' equity sections of Reitmans (Canada) Limited's January 30, 2010, balance sheet (in thousands):

Accounts payable and accrued items..................$ 77,766

Current portion of mortgage payable......................1,300

Income taxes payable.................................................4,677

Mortgage payable.....................................................11,431

Other long-term liabilities........................................26,052

Other shareholders' equity items...........................(1,508)

Retained earnings...................................................480,622

Common shares........................................................31,052

Instructions

(a) Identify the balance sheet (statement of financial position) category in which each of the above items should be classified.

(b) Prepare the liabilities and equity sections of the balance sheet.

(c) If you completed P2-3B, compare the total assets in P2-3B with the total liabilities and shareholders' equity in P2-4B. Do these two amounts agree?

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...