Preparing a Balance Sheet

Sparrow Company had the following adjusted trial balance at December 31.

Sparrow Company Adjusted Trial Balance December 31DebitCreditCash$3,150Accounts Receivable5,650Prepaid Insurance4,480Equipment42,000Accumulated Depreciation (Equipment)$24,000Accounts Payable2,800Salaries Payable4,450Unearned Service Revenue3,875Common Stock8,000Retained Earnings2,255Dividends Declared10,500Service Revenue99,600Salaries Expense49,400Rent Expense17,250Insurance Expense2,200Depreciation Expense4,950Income Taxes Expense5,400Totals144,980144,980

Required:

Prepare a classified balance sheet for Sparrow at December 31.

AssetsCurrent assets:

Cash

Common stock

Equipment

Retained earnings

Unearned service

revenue

$- Select -

Accounts payable

Accounts receivable

Accumulated depreciation

Depreciation expense

Service revenue

- Select -

Common stock

Dividends declared

Income taxes expense

Insurance expense

Prepaid insurance

- Select -Total current assets$fill in the blank 7Property, plant, and equipment:

Accounts payable

Accounts receivable

Cash

Equipment

Prepaid insurance

$- Select -

Less: Accounts receivable

Less: Accumulated depreciation

Less: Common stock

Less: Depreciation expense

Less: Unearned service revenue

- Select -Total property, plant, and equipmentfill in the blank 12Total assets$fill in the blank 13LiabilitiesCurrent liabilities:

Accounts payable

Accounts receivable

Cash

Common stock

Dividends declared

$- Select -

Common stock

Equipment

Retained earnings

Salaries expense

Salaries payable

- Select -

Accounts receivable

Income taxes expense

Retained earnings

Service revenue

Unearned service

revenue

- Select -Total current liabilities$fill in the blank 20Stockholders' EquityStockholders' equity:

Accounts receivable

Cash

Common stock

Dividends declared

Service revenue

$- Select -

Accounts payable

Accumulated depreciation

Dividends declared

Retained earnings

Unearned service revenue

- Select -Total stockholders' equityfill in the blank 25Total liabilities and stockholders' equity$fill in the blank 26