Colombia Textiles began operations several years ago. Its post-closing trial balance at December 31, 2023, is shown below (with accounts listed in alphabetical order):

¹Assume all accounts have a normal balance. ²The owner, Brandy Colombia, made no investments during 2023. ³$180,000 of the note is due after December 31, 2024. ⁴$3,000 of the notes receivable will be collected during 2024.

Additional information: 

The following closing entries were recorded on December 31, 2023, for the year just ended.

Required
Using the information provided, prepare a single-step income statement, statement of changes in equity, and classified balance sheet.

Analysis Component:
Refer to Spin Master’s December 31, 2020, balance sheet in Appendix III. Compare Spin Master’s liabilities to those of Colombia Textiles. Ignoring the balance sheet dates, which company has the stronger balance sheet?

Transcribed Image Text:

Accounts payable Accounts receivable Accumulated depreciation, office furniture Accumulated depreciation, store fixtures Brandy Colombia, capital2 Cash Franchise Merchandise inventory Notes payable3 Notes receivable4 Office furniture Office supplies Prepaid rent Store fixtures Unearned revenue Account Account Balance¹ ($000s) 34 106 38 61 291 48 62 236 225 14 52 5 32 106 12