Required:

(a) Prepare a classified balance sheet in good form.

(b) Answer the following questions related to the information above. 1. By what percentage was the building depreciated?

2. Provide the entry that was made to record the 2020 dividend declaration

3. Provide the entry that was made for the advances to the suppliers. Assume cash transactions 4. Compute working capital on December 31, 2020

The following accounts are taken from the general ledger of Spice Corp. on December 31, 2020, its annual year-end. Cash... Accounts receivable.. Short-term investment (cost which approximates market) Inventory.. Prepaid expense (current) Bond sinking fund (to pay bonds at maturity). Advances to suppliers (current). Cash dividends declared during 2020 ... Supplies ... Investment in stock (at fair value). Unamortized discount on bonds payable..... Note receivable (long-term) Land (building site in use). Building. Equipment Franchise (used in operations)... Total debits.. $ 20,000 Mortgage payable (long term) .... $ 54,000 37,000 Accounts payable...... 56,000 Dividends (cash) payable (payable 40,000 March 1, 2021) 10,000 35,000 Deferred revenue 3,000 1,000 Interest payable 4,000 Accumulated depreciation, building ...... 210,000 35,000 Accumulated depreciation, equipment. ... 20,000 4,000 10,000 Allowance for doubtful accounts. 2,000 2,000 Bonds payable (maturity 2025)..... 102,000 22,000 Common stock, $4 par (50,000 shares issued and outstanding)... 200,000 4,000 Preferred stock, $10 par (8,000 shares, 25,000 issued and outstanding). 80,000 30,000 Additional paid-in capital-preferred 450,000 stock.. 16,000 120,000 Retained earnings, December 31, 2019... 6,000 16,000 Net income for 2020... 88,000 $851,000 Total credits $851,000 Required a. Prepare a classified balance sheet in good form. b. Answer the following questions related to the information above. 1. By what percentage was the building depreciated? 2. Provide the entry that was made to record the 2020 dividend declaration. 3. Provide the entry that was made for the advances to suppliers. Assume cash transactions. 4. Compute working capital on December 31, 2020