Question

Presented below is the adjusted trial balance of Kelly Corporation at December 31, 2020. Debit Credit Cash $ ? Supplies 1,200 Prepaid Insurance 1,000 Equipment 48,000 Accumulated Depreciation-Equipment $ 4,000 Trademarks 950 Accounts Payable 10,000 Salaries and Wages Payable 500 Unearned Service Revenue 2,000 Bonds Payable (due 2027) 9,000 Common Stock 10,000 Retained Earnings 25,000 Service Revenue 10,000 Salaries and Wages Expense 9,000 Insurance Expense 1,400 Rent Expense 1,200 Interest Expense 900 Total $ ? $ ? Additional information: 1. Net loss for the year was $2,500. 2. No dividends were declared during 2020. Prepare a classified balance sheet as of December 31, 2020. (List Current Assets in order of liquidity.)

Answer 1

The most common classifications used within a classified balance sheet are:

Current assets

Long-term investments

Fixed assets (or Property, Plant, and Equipment)

Intangible assets

Other assets

Current liabilities

Long-term liabilities

Shareholders' equity

Step-by-step explanation:

Assets

Current assets

Cash 6850

Supplies 1200

Prepaid insurance 1000

Total current assets 9050

Fixed assets (or Property, Plant, and Equipment)

Equipment 48000

Accumulated depre -4000

Total fixed assets 44000

Intangible assets

Trademarks 950

Total Intangible assets 950

Tota assets 54000

Liabilities

Current liabilities

Account Payable 10000

Salaries and wages 500

Unerned service revenue 2000

Total current liabilities 12500

Long-term liabilities

Bonds payable 9000

Total long term liabilities 9000

Total liabilities 21500

Shareholders' equity

Common stock 10000

Retained earnings 22500

Total shareholders´ 32500

Total liabilities+shareholder 54000