Debit

Cash

Interest receivable

Supplies

Long$-$term investments

Land

Building

Accumulated depreciation$-$building

Accumulated depreciation$-$equipment

Accounts payable

Interest payable

Unearned revenue

Notes payable $($ $$6,$ ooo must be paid in Feb. $2025)$

R$.$ Falkner, capital

R$.$ Falkner, drawings

Service revenue

Interest revenue

Depreciation expense

Interest expense

Insurance expense

Salaries expense

Supplies expense

Utilities expense

Instructions

a$.$ Prepare an income statement for the year ended March $31,2024.$

c$.$ Prepare a classified balance sheet.

d$.$ Prepare closing entries.

e$.$ Use T accounts to post the closing entries and calculate the balance in each account. $($Ignore the accounts not affected by the closing entries.$)$

f$.$ Prepare a post$-$closing trial balance and compare the balance in the R$.$ Falkner, Capital account with the information in the statement of owner's equity.

Taking It Further What alternatives should be considered when deciding on the presentation of information in the classified balance sheet?