A friend who owns a small company selling old vinyl LP's trading as "Muddy Waters O' Time Records" knows that you

are studying accounting, and has asked if you would help prepare the entity's classified balance sheet statement and an

income statement. To perform this task, the friend has provided you with the following list of items generated from the

transactions for the year.

You are required to

classify each item and

select the report in which the item will be presented

Item $ Classification Report 800000 . 4 Land and Building Suppliers owed money by the business 4 12000 Inventory 16000 4) . Sales 137000 . . e Accumulated Depreciation 22000 Monies owed to the business from customers 28000 e 12000 Depreciation Loan owed to a bank, to be repaid over 5 years 500000 . Revenue received in advance 8500 1500 Allowance for Doubtful Debts Prepaid insurance expense 7000 Retained Earnings 82000 MO Insurance expense 7000 . Retained Earnings 82000 . Insurance 5000 . Wages 76000 298000 . Share Capital Shop shelving and furniture 56000 . Interest 4000 COGS 59000 . Accrued Expense 2000