P FIUDIerll selA LUI Preparing classified financial statements. Superior Hardwood Company distributes hardwood products to small furniture manufacturers. The adjusted trial balance data given below is from the firm's worksheet for the year ended December 31, 2019 INSTRUCTIONS 1. Prepare a classified income statement for the year ended December 31, 2019. The expense accounts represent warehouse expenses, selling expenses, and general and administrative expenses. 2. Prepare a statement of owner's equity for the year ended December 31, 2019. No additional investments were made during the period. 3. Prepare a classified balance sheet as of December 31, 2019. The mortgage payable extends for more than a year. ACCOUNTS Debit Credit Cash $ 34,100 Petty Cash Fund 500 Notes Receivable, due 2020 11,800 Accounts Receivable 86,000 Allowance for Doubtful Accounts $ 6,000 Merchandise Inventory 234,000 Warehouse Supplies 2,860 Office Supplies 1,420 Prepaid Insurance 10,200 Land 46,000 Building 178,000 Accumulated Depreciation-Building 54,000 Warehouse Equipment 37.000 Accumulated Depreciation-Warehouse Equipment 17,400 Delivery Equipment 51,000 Accumulated Depreciation-Delivery Equipment 19,600 Office Equipment 25,000 Accumulated Depreciation-Office Equipment 12,000 Financial Statements and Closing Procedures ACCOUNTS (CONT.) Debit Credit 20,200 49.000 580 61,000 17.000 452,460 127,000 244,000 234.000 1,685,000 18,200 1,580 767,000 13,800 8.440 11.160 Notes Payable, due 2020 Accounts Payable Interest Payable Mortgage Payable Loans Payable, Long-term Charles Ronie, Capital (Jan. 1) Charles Ronie, Drawing Income Summary Sales Sales Returns and Allowances Interest Income Purchases Freight in Purchases Returns and Allowances Purchases Discounts Warehouse Wages Expense Warehouse Supplies Expense Depreciation Expense-Warehouse Equipment Salaries Expense-Sales Travel and Entertainment Expense Delivery Wages Expense Depreciation Expense-Delivery Equipment Salaries Expense-Office Office Supplies Expense Insurance Expense Utilities Expense Telephone Expense Payroll Taxes Expense Property Taxes Expense Uncollectible Accounts Expense Depreciation Expense-Building Depreciation Expense-Office Equipment Interest Expense Totals 199,600 7,100 5,800 269,200 21,500 60.330 9,800 70,600 4,000 6,200 9,290 6,520 59.000 5,600 5,800 9,000 4,000 8,200 $2,649,420 $2,649.420 Analyze: What is the current ratio for this business? APTER 13 Financial Statements and Closing Procedures ACCOUNTS (CONT.) Debit Credit 20,200 49.000 580 61,000 17.000 452,460 127,000 244,000 234,000 1,685,000 18,200 1,580 767,000 13,800 8,440 11,160 Notes Payable, due 2020 Accounts Payable Interest Payable Mortgage Payable Loans Payable, Long-term Charles Ronie, Capital (Jan. 1) Charles Ronie, Drawing Income Summary Sales Sales Returns and Allowances Interest Income Purchases Freight in Purchases Returns and Allowances Purchases Discounts Warehouse Wages Expense Warehouse Supplies Expense Depreciation Expense-Warehouse Equipment Salaries Expense--Sales Travel and Entertainment Expense Delivery Wages Expense Depreciation Expense-Delivery Equipment Salaries Expense-Office Office Supplies Expense Insurance Expense Utilities Expense Telephone Expense Payroll Taxes Expense Property Taxes Expense Uncollectible Accounts Expense Depreciation Expense-Building Depreciation Expense-Office Equipment Interest Expense Totals 199,600 7.100 5,800 269,200 21,500 60,330 9,800 70,600 4,000 6,200 9,290 6,520 59,000 5,600 5,800 9,000 4.000 8,200 $2,649,420 $2,649,420 Analyze: What is the current ratio for this business
