Preparation of a Classified Balance Sheet The following accounts are taken from the general ledger of Spice Corp. on December 31, its annual year-end. Debit Balance Accounts Credit Balance Accounts Cash Accounts receivable $40,000 Mortgage payable (long term) $108,000 74,000 Accounts payable 112,000 Short-term investment (cost which approximates market) Inventory 80,000 Dividends (cash) payable (payable March 1 of next year) 20,000 70,000 Deferred revenue 6,000 Equipment Franchise (used in operations) Total debits Prepaid expense (current) Bond sinking fund (to pay bonds at maturity) Advances to suppliers (current) Cash dividends (declared during the year) Supplies Investment in stock (at fair value) Unamortized discount on bonds payable Note receivable (long-term) Land (building site in use) Building 70,000 Accumulated depreciation, building 8,000 Accumulated depreciation, equipment 20,000 Allowance for doubtful accounts 4,000 Bonds payable (matures in 5 years) 44,000 Common stock 50,000 Additional paid-in capital--preferred stock 60,000 Retained earnings, December 31, prior year 900,000 Net income for the year 240,000 Total credits 2,000 Interest payable 8,000 420,000 40,000 4,000 204,000 400,000 8,000 Preferred stock** 160,000 32,000 12,000 176,000 $1,702,000 32,000 $1,702,000 *Common stock, par $8.00, 50,000 shares issued and outstanding **Preferred stock, par $20.00, 8,000 shares issued and outstanding Required a. Prepare a classified balance sheet. Note: Do not use negative signs with any of your answers