Purchase Solution

Preparation of a Classified Balance Sheet

Not what you're looking for?

Ask Custom Question

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?

Purchase this Solution

Solution Summary

The solution prepares a Classified Balance Sheet.

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 . . . . . . ...

Purchase this Solution


Free BrainMass Quizzes
Paradigms and Frameworks of Management Research

This quiz evaluates your understanding of the paradigm-based and epistimological frameworks of research. It is intended for advanced students.

Income Streams

In our ever changing world, developing secondary income streams is becoming more important. This quiz provides a brief overview of income sources.

Business Processes

This quiz is intended to help business students better understand business processes, including those related to manufacturing and marketing. The questions focus on terms used to describe business processes and marketing activities.

Team Development Strategies

This quiz will assess your knowledge of team-building processes, learning styles, and leadership methods. Team development is essential to creating and maintaining high performing teams.

IPOs

This Quiz is compiled of questions that pertain to IPOs (Initial Public Offerings)