Preparation of a Classified Balance Sheet Following are the December 31, 2009, account balances for Siraco Company.

Required:
1. Prepare a classified balance sheet as of December 31, 2009.
2. Interpretive Question: On the basis of its 2009 earnings, was this company’s decision to pay dividends of $1,500 a sound one?

Transcribed Image Text:

Cash Accounts receivable Supplies Equipment Accounts payable Wages payable Dividends paid $ 1,950 2,500 1,800 11,275 3,450 250 1,500 Capital stock 775 Retained earnings, January 1, 2009 12,000 Revenues Miscellaneous expense Supplies expense 10,000 1,550 3,700 Wages expense 2,200