Using the following accounts, prepare a classified balance sheet at year end, May 31, 20xx: Accounts Payable,

Question:

Using the following accounts, prepare a classified balance sheet at year end, May 31, 20xx: Accounts Payable, $800; Accounts Receivable, $1,100; Accumulated Depreciation-Equipment, $700; Cash, $200; Owner’s Investment, $1,000; Equipment, $3,000; Franchise, $200; Investments (long-term), $500; Merchandise Inventory, $600; Notes Payable (long-term), $400; Owner’s capital, $?; Wages Payable, $100. Assume that this is the company’s first year of operations.

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...