Problem 13.1A (Static) 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, 20X1.

ACCOUNTS	Debit			Credit
Cash	$	34,100
Petty Cash Fund		500
Notes Receivable, due 20X2		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 20X2					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:

1. Prepare a classified income statement for the year ended December 31, 20X1. The expense accounts represent warehouse expenses, selling expenses, and general and administrative expenses.
2. Prepare a statement of owners equity for the year ended December 31, 20X1. No additional investments were made during the year.
3. Prepare a classified balance sheet as of December 31, 20X1. The mortgage payable extends for more than a year.

Analyze: What is the current ratio for this business?