Prepare A Classified Balance Sheet At July 31

Prepare a classified balance sheet at July 31

Prepare a classified balance sheet at July 31

These financial statement items are for Tamarisk, Inc. at year-end, July 31, 2017. Salaries and wages payable $3,480 Salaries and wages expense $58,800 Supplies expense $17,400 Equipment $19,900 Accounts payable $4,100 Service revenue $67,400 Rent revenue $10,300 Notes payable (due in ,600) Common stock $16,000 Cash $30,500 Accounts receivable $11,580 Accumulated depreciation—equipment $8,000 Dividends $4,000 Depreciation expense $6,000 Retained earnings (beginning of the year) $35,300 Your answer is correct. Prepare an income statement for the year. Tamarisk, Inc. did not issue any new stock during the year. (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).) For the Year Ended July 31, 2017 Revenues Service Revenue $67,400 Rent Revenue $10,300 Total Revenues $77,700 Expenses Salaries and Wages Expense $58,800 Depreciation Expense $6,000 Supplies Expense $17,400 Total Expenses $82,200 Net Income (Loss) $(4,500) Your answer is partially correct. Try again. Prepare a retained earnings statement for the year. Tamarisk, Inc. did not issue any new stock during the year. Your answer is partially correct. Try again. Prepare a classified balance sheet at July 31. (List current assets in order of liquidity.) Tamarisk, Inc. Balance Sheet Assets Liabilities and Stockholders' Equity Current Assets Cash $30,500 Accounts Receivable $11,580 Total Current Assets $42,080 Property, Plant and Equipment Equipment $19,900 Less: Accumulated Depreciation—Equipment $(8,000) Net Property, Plant and Equipment $11,900 Total Assets $53,980 Accounts Payable $4,100 Salaries and Wages Payable $3,480 Total Current Liabilities $7,580 Long-term Liabilities Notes Payable $1,600 Total Liabilities $9,180 Stockholders' Equity Common Stock $16,000 Retained Earnings (Beginning) $35,300 Add: Net Income $(4,500) Less: Dividends $(4,000) Retained Earnings (Ending) $26,800 Total Stockholders' Equity $42,800 Total Liabilities and Stockholders' Equity $51,980

Sample Paper For Above instruction

The preparation of a classified balance sheet at July 31 for Tamarisk, Inc. involves organizing the company’s assets, liabilities, and stockholders' equity into specific categories based on liquidity and maturity. Such classification provides clarity to stakeholders by delineating current assets and liabilities from long-term or non-current items, facilitating better financial analysis and decision-making.

First, the current assets consist of cash and accounts receivable, totaling $42,080. Cash, being the most liquid asset, is listed first, followed by accounts receivable. The net property, plant, and equipment (PP&E) is calculated by subtracting accumulated depreciation from the gross equipment amount. With equipment valued at $19,900 and accumulated depreciation at $8,000, the net PP&E amounts to $11,900. This classification clearly differentiates current assets from fixed assets, emphasizing the company's liquidity position.

On the liabilities side, Tamarisk, Inc.'s current liabilities include accounts payable and salaries and wages payable, totaling $7,580. These obligations are due within the operating cycle or within one year, hence their classification as current liabilities. Long-term liabilities consist of notes payable amounting to $1,600, which are due beyond the current period, marking them as non-current liabilities.

Stockholders’ equity is enacted from the common stock and retained earnings. Since the company did not issue any new stock during the year, the common stock remains at $16,000. Retained earnings at beginning of the year were $35,300. After accounting for net income of $4,500 and dividends paid of $4,000, the ending retained earnings decrease to $26,800. This history reflects the company's profit retention and dividend policy over the period.

The total assets equate to the sum of current assets and net PP&E, equaling $53,980, which balances with the sum of total liabilities and stockholders’ equity, also totaling $51,980, indicating the fundamental accounting equation is satisfied. The classification enhances understanding of Tamarisk, Inc.'s financial health by illustrating liquidity, leverage, and equity structure, providing valuable insights for investors, creditors, and management alike. Recognizing the importance of proper asset and liability categorization ensures transparency and facilitates effective financial management.

References

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