Mel King Has Asked You to Prepare a Classified Balance

Essay

Mel King has asked you to prepare a classified balance sheet for Pad Co. as of December 31, 2017. Ending merchandise inventory was $1,800:
$$\begin{array} { | l | l | l | l | } \hline \text { Cash } & \$ 1,500 & \text { Accounts Payable } & \$ 1,800 \\\hline \text { Prepaid Rent } & \$ 4,500 & \text { Salaries Payable } & \$ 2,250 \\\hline \text { Prepaid Insurance } & \$ 3,000 & \text { Notes Payable (long-term) } & \$ 1,500 \\\hline \text { Office Equipment } & \$ 4,500 & & \\\hline \text { Accum. Depreciation } & \$ 3,000 & \text { J. Pad, Capital } & \$ 9,750 \\\hline\end{array}$$