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Problem 13.1A Preparing classified financial statements. LO 13-1, 13-2, 13-3 Superior Hardwood Company distributes hardwood products to small furniture manufacturers. The adjusted trial balance data

Problem 13.1A Preparing classified financial statements. LO 13-1, 13-2, 13-3

Superior Hardwood Company distributes hardwood products to small furniture manufacturers. The adjusted trial balance data given below is from the firms worksheet for the year ended December 31, 2019.

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 DepreciationBuilding 54,000
Warehouse Equipment 37,000
Accumulated DepreciationWarehouse Equipment 17,400
Delivery Equipment 51,000
Accumulated DepreciationDelivery Equipment 19,600
Office Equipment 25,000
Accumulated DepreciationOffice Equipment 12,000
Notes Payable, due 2020 20,200
Accounts Payable 49,000
Interest Payable 580
Mortgage Payable 61,000
Loans Payable, Long-term 17,000
Charles Ronie, Capital (Jan. 1) 452,460
Charles Ronie, Drawing 127,000
Income Summary 244,000 234,000
Sales 1,685,000
Sales Returns and Allowances 18,200
Interest Income 1,580
Purchases 767,000
Freight In 13,800
Purchases Returns and Allowances 8,440
Purchases Discounts 11,160
Warehouse Wages Expense 199,600
Warehouse Supplies Expense 7,100
Depreciation ExpenseWarehouse Equipment 5,800
Salaries ExpenseSales 269,200
Travel and Entertainment Expense 21,500
Delivery Wages Expense 60,330
Depreciation ExpenseDelivery Equipment 9,800
Salaries ExpenseOffice 70,600
Office Supplies Expense 4,000
Insurance Expense 6,200
Utilities Expense 9,290
Telephone Expense 6,520
Payroll Taxes Expense 59,000
Property Taxes Expense 5,600
Uncollectible Accounts Expense 5,800
Depreciation ExpenseBuilding 9,000
Depreciation ExpenseOffice Equipment 4,000
Interest Expense 8,200
Totals $ 2,649,420 $ 2,649,420

Required:

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.

Prepare a statement of owners equity for the year ended December 31, 2019. No additional investments were made during the period.

Prepare a classified balance sheet as of December 31, 2019. The mortgage payable extends for more than a year.

Analyze: What is the current ratio for this business?

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