The following adjusted trial balance is for Carla Co. at year-end December 31. The credit balance in Carla West, Capital at the beginning of the year, January 1, was $320,000. The owner, Carla West, invested an additional $100,000 during the current year. The land held for future expansion was also purchased during the current year.
$The following adjusted trial balance is for Carla Co. at year-end December 31. The credit balance in Carla West, Capital at the beginning of the year, January 1, was $320,000. The owner, Carla West, invested an additional $100,000 during the current year. The land held for future expansion was also purchased during the current year. \begin{array}{l|l|l} \hline\text { Sal aries payable } & & 10,500 \\ \hline \text { Interest payable } & & 7,900 \\ \hline \text { Long-term note payable } && 252,000 \\ \hline \text { C. West, Capital } && 420,000\\ \hline\text { C. West, Withdrawals } & 60,000 & \\ \hline \text { Service fees earned } & & 470,800 \\ \hline \text { Sal aries expense } & 195,000 &\\ \hline \text { Insurance expense } & 18,000 \\ \hline \text { Rent expense } & 36,000 \\ \hline \text { Depreciation expense-Equipment } & 12,000 \\ \hline \text { Depreciation expense-Building } & 15,000 \\ \hline \text { Totals } & \$ 1,436,000 & \$ 1,436,000 \\ \hline \end{array} Required: Prepare a classified balance sheet as of December 31. (Note: A $21,000 installment on the long-term note payable is due within one year.)$

\begin{array}{l|l|l}\hline\text { Sal aries payable } & & 10,500 \\\hline \text { Interest payable } & & 7,900 \\\hline \text { Long-term note payable } && 252,000 \\\hline \text { C. West, Capital } && 420,000\\\hline\text { C. West, Withdrawals } & 60,000 & \\ \hline \text { Service fees earned } & & 470,800 \\\hline \text { Sal aries expense } & 195,000 &\\\hline \text { Insurance expense } & 18,000 \\\hline \text { Rent expense } & 36,000 \\\hline \text { Depreciation expense-Equipment } & 12,000 \\\hline \text { Depreciation expense-Building } & 15,000 \\\hline \text { Totals } & \$ 1,436,000 & \$ 1,436,000 \\\hline \end{array}

Required: Prepare a classified balance sheet as of December 31. (Note: A $21,000 installment on the long-term note payable is due within one year.)

Two Common Subgroups for Liabilities on a Classified Balance Sheet

Multiple Choice

Correct Answer:VerifiedUnlock this answer nowGet Access to more Verified Answers free of chargeAccess For Free

Correct Answer:
Verified
Unlock this answer now
Get Access to more Verified Answers free of charge