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    Preparation of a Classified Balance Sheet

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    Following are the December 31, 2006, account balances for Siraco Company.
    Cash . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 1,950
    Accounts receivable . . . . . . . . . . . . . . . . 2,500
    Supplies . . . . . . . . . . . . . . . . . . . . . . . . . 1,800
    Equipment . . . . . . . . . . . . . . . . . . . . . . . 11,275
    Accounts
    Accounts payable . . . . . . . . . . . . . . . . . . $ 3,450
    Wages payable . . . . . . . . . . . . . . . . . . . . 250
    Dividends paid . . . . . . . . . . . . . . . . . . . . 1,500
    Capital stock . . . . . . . . . . . . . . . . . . . . . . 775
    Retained earnings, January 1, 2006 . . . . 12,000
    Revenues . . . . . . . . . . . . . . . . . . . . . . . . 10,000
    Miscellaneous expense . . . . . . . . . . . . . . 1,550
    Supplies expense . . . . . . . . . . . . . . . . . . 3,700
    Wages expense . . . . . . . . . . . . . . . . . . . 2,200
    Required:
    1. Prepare a classified balance sheet as of December 31, 2006.
    2. Interpretive Question: On the basis of its 2006 earnings, was this company's decision to pay dividends of $1,500 a sound one?

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    https://brainmass.com/business/balance-sheet/preparation-of-a-classified-balance-sheet-165866

    Solution Preview

    Following are the December 31, 2006, account balances for Siraco Company.
    Cash . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 1,950
    Accounts receivable . . . . . . . . . . . . . . . . 2,500
    Supplies . . . . . . . . . . . . . . . . . . . . . . . . . 1,800
    Equipment . . . . . . . . . . . . . . . . . . . . . . . 11,275
    Accounts
    Accounts payable . . . . . . . . . . . . . . . . . . $ 3,450
    Wages payable . . . . . . . . . . . . . . . . . . . . 250
    Dividends paid . . . . . . . . . . . . . . . . . . . . 1,500
    Capital stock . . . . . . . . . . . . . . . . . . . . . . 775
    Retained earnings, January 1, 2006 . . . . 12,000
    Revenues . . . . . . ...

    Solution Summary

    The solution prepares a Classified Balance Sheet.

    $2.19

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