Using the following accounts, prepare a classified balance sheet at year end, May 31, 2014: Accounts Payable,

Question:

Using the following accounts, prepare a classified at year end, May 31, 2014: Accounts Payable, $1,600; Accounts Receivable, $2,200; Accumulated Depreciation—Equipment, $1,400; Cash, $400; Owner’s Investment, $2,000; Equipment,
$6,000; Franchise, $400; Investments (long-term), $1,000; Merchandise Inventory, $1,200; Notes Payable (long-term), $800; Owner’s Capital, $?; Wages Payable, $200.
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...