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    Perpare Classified Balance Sheet

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    The solution addresses a classfied balance sheet.

    Prepare a classified balance sheet?
    Review the following information:

    12-31
    2007 2006

    Cash $ 35,000 $ 32,000
    Accounts receivable 33,000 30,000
    Allowance for doubtful accounts (1,300) (1,100)
    Inventory 31,000 47,000
    Property, plant, & equipment 100,000 95,000
    Accumulated depreciation (16,500) (15,000)
    Trade accounts payable (25,000) (15,500)
    Income taxes payable (21,000) (29,100)
    Deferred income taxes (5,300) (4,600)
    8% callable bonds payable (45,000) (20,000)
    Unamortized bond discount 4,500 5,000
    Common stock (50,000) (40,000)
    Additional paid-in capital (9,100) (7,500)
    Retained earnings (25,200) (64,600)
    Sales (558,300) (778,700)
    Cost of goods sold 250,000 380,000
    Selling expenses 141,500 172,000
    General and administrative expenses 137,000 151,300
    Interest expense 4,300 2,600
    Income tax expense 20,400 61,200
    $ - $ -

    Additional information:
    1. Los Lobos purchased $5,000 in equipment during 2007.
    2. Los Lobos allocated one-third of its depreciation expense to selling expenses and
    the remainder to general and administrative expenses.
    3. Bad debt expense for 2007 was $5,000, and write-offs of uncollectible accounts
    totaled $4,800.
    4. $12, 000 of the debt is current portion.

    Cash Sales $72,600
    Collections on Receivables 477,900
    Purchases (219,500)
    Purchase of Equipment (5,000)
    Wages (150,700)
    Payments to Suppliers (126,300)
    Tax Payments (27,800)
    Borrowing 30,000
    Repayment of Debt (5,000)
    Interest Payments (3,800)
    Sale of Stock 11,600
    Dividends (51,000)

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    https://brainmass.com/business/balance-sheet/perpare-classified-balance-sheet-250701

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    Solution Summary

    The solution explains how to prepare a classified balance sheet for Los Lobos

    $2.19

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