Using the adjusted trial balance in Problem 6B, prepare the income statement, statement of changes in equity, and classified balance sheet.
Analysis Component: Why must liabilities be separated on the balance sheet between current and long-term: What effect would it have had on Warren's balance sheet if the long-term notes were not separated?
In Problem 6B

No. Account Debit Credit 101 Cash 104 Short-term investments 126 Supplies 149 Notes receivable, due May 1, 2016 167 Equipment 168 Accumulated depreciation, equipment. 173 Building S 4,100 6,800 2,250 41,000 27,000 S 14,600 174 Accmulated depreciation, building 58,000 47,000 8,900 183 Land 193 Franchise 201 Accounts payable 203 Unearned professional fees 233 Long-term notes payable. 251 Warren Jones, capital 30 Warren Jones, withdrawals 302 Photography fees earned 401 Interest earned. 605 Depreciation expense, building 606 Depreciation expense, equipment 612 Wages expense. 623 Interest expense 633 nsurance expense 5,000 1,300 64,000 31,000 1,500 86,342 240 4,000 3,000 34,000 637 Supplies expense. 652 Telephone expense 688 Utilities expense 2,850 1,800 842 3,640 Totals $260,482 $260,482