On December $1,2025,$ Sandhill Distributing Company had the following account balances.DebitCash$$7,100$Accounts Receivable$4,500$Inventory$11,900$Supplies$1,200$Equipment$22,000-$$$46700$Credit Accumulated Depreciation$-$Equipment$$2,200$Accounts Payable$4,400$Salaries and Wages Payable$1,000$Common Stock$15,000$Retained Earnings$24,100$$$46,700$During December, the company completed the following summary transactions.Dec. $6$Paid $$1,600$ for salaries due employees, of which $$600$ is for December and $$1,000$ is for November salaries payable$\mathrm{.}8$Received $$1,900$ cash from customers in payment of account $($no discount allowed$)\mathrm{.}10$Sold merchandise for cash $$6,200.$ The cost of the merchandise sold was $$4,300\mathrm{.}13$Purchased merchandise on account from Hecht Co$.$ $$7,800,$ terms $2/10,$ n$/30\mathrm{.}15$Purchased supplies for cash $$2,000\mathrm{.}18$Sold merchandise on account $$11,700,$ terms $3/10,$ n$/30.$ The cost of the merchandise sold was $$7,700\mathrm{.}20$Paid salaries $$1,900\mathrm{.}23$Paid Hecht Co$.$ in full, less discount$\mathrm{.}27$ Received collections in full, less discounts, from customers billed on December $18.$Adjustment data:$1.$ Accrued salaries payable $$900\mathrm{.}2.$ Depreciation $$200$ per month$\mathrm{.}3.$ Supplies on hand $$1,500\mathrm{.}4.$ Income tax due and unpaid at December $31$ is $$100.$Prepare a classified balance sheet at December $31.($List Current Assets In order of liquidity.$)$

Answer rating: 100% (QA)

To prepare a classified balance sheet for Sandhill Distributing Company as of December 31 2025 well need to account for the provided account balances and the transactions that occurred during December ... View the full answer