The trial balance of Zhang Ltd. at December 31, 2017, follows:

Instructions
(a) Prepare a classified statement of financial position as at December 31, 2017. Ignore income taxes.
(b) Is there any situation where it would make more sense to have a statement of financial position that is not classified?

Transcribed Image Text:

Debits Credits $205,000 8,010,000 Sales revenue FV-NI investments (at fair value) Cost of goods sold Bond investment at amortized cost FV-OCI investments (fair value $345,000) Notes payable (due in six months) Accounts payable Selling expenses Investment income or loss 153,000 4,800,000 299,000 277,000 98,000 545,000 1,860,000 13,000 260,000 1,040,000 Buildings Commission payable Accrued liabilities Accounts receivable Accumulated depreciation-buildings Allowance for doubtful accounts Administrative expenses Interest expense Inventory Gain on sale of land Correction of prior year error Notes payable (due in five years) Equipment Bonds payable (due in three years) Accumulated depreciation-equipment Intangible assets franchises (net) Common shares Intangible assets-patents (net) Retained earnings Accumulated other comprehensive income Totals 136,000 96,000 515,000 152,000 25,000 900,000 211,000 687,000 60,000 40,000 900,000 600,000 1,000,000 60,000 160,000 809,000 195,000 218,000 80,000 $12,202,000 $12,202,000 * The investment income or loss relates to the FV-NI investments.