Balance Sheet Preparation Luis Baldazar incorporated a business on January 3, 2000. The following is a summary of the business’s transactions during 2000.

1. On January 3, Luis transferred cash of $100,000 from his personal checking account into the business checking account. In exchange, the business issued 10,000 shares of

$1-par common stock to Luis.

. On January 3, Luis signed a three-year lease agreement for a building and paid $42,000 to cover the rent for the entire three-year period.

3. On January 3, Luis purchased equipment for $25,000 and signed a four-year, 10 percent note payable for the full amount. All interest is paid at the end of each year, and the full principal is due at the maturity of the note. The equipment has a ten-year life and no expected residual value.

4. During the year, the business had sales, all on credit, of

$680,000 and collected $636,000. All remaining accounts are expected to be collected.

5. During the year, the business incurred total expenses of

$512,000. All were paid in cash except for depreciation, wages of $1,500 still owed, and $41,000 owed to suppliers at year-end. The appropriate amount of rent expense was included in the total.

6. Because of the business’s success, Luis declared and paid himself a dividend of $20,000.

i)

Based on the information given, prepare a classified balance sheet as of December 31, 2000.