On March 8, 2000, Peter Bailey started his own company by depositing $10,000 in the Bailey Company checking account at the local bank. On March 14, 2000, the Bailey Company checkbook was stolen. During that period of time, the Bailey Company had entered into several transactions, but unfortunately it had not set up an accounting system for recording the transactions. Bailey did save numerous source documents, however, which had been put into an old shoebox.

In the shoebox is a fire insurance policy dated March 13, 2000, on a building owned by the Bailey Company. Listed on the policy was an amount of $300 for one year of insurance. “Paid in Full” had been stamped on the policy by the insurance agent. Also in- cluded in the box was a deed for land and a building at 800 East Main. The deed was dated March 10, 2000, and showed an amount of $40,000 (of which $8,000 was for the land). The deed indicated that a down payment had been made by the Bailey Company and that a mortgage was signed by the company for the balance owed. The shoebox also contained an invoice dated March 14, 2000, from the Ace Office Equipment Company for $600 of office equipment sold to the Bailey Company. The in- voice indicates that the amount is to be paid at the end of the month. A $34,000 mortgage, dated March 10, 2000, and signed by the Bailey Company, for the purchase of land and a building is also included in the shoebox. Finally, a 30-day, $4,000 note receivable is in the shoebox. It is dated March 15, 2000, and is issued to the Bailey Company by the Ret Company for “one-half of the land located at 800 East Main.” The Bailey Company has asked for your help in preparing a classified balance sheet as of March 15, 2000. Peter Bailey indicates that company checks have been issued for all cash payments. Bailey has called its bank. The bank’s records indicate that the Bailey Company’s checking account balance is $9,500, consisting of a $10,000 deposit, a $200 canceled check made out to the Finley Office Supply Company, and a $300 canceled check made out to the Patz Insurance Agency. You notice that the Bailey Company has numerous office supplies on hand. Peter Bailey states that a company check was issued on March 8, 2000, to purchase the supplies but that none of the supplies had been used. Required: Based on the preceding information, prepare a classified balance sheet for the Bailey Company on March 15, 2000. Show supporting calculations.