Final answer:
A classified balance sheet for Alpha Co. separates assets into current and long-term categories, includes cash, accounts receivable, merchandise inventory, and land, and categorizes the liabilities into current and long-term, which includes accounts payable and long-term notes payable. The shareholders' equity is composed of common stock and retained earnings.
Step-by-step explanation:
To prepare a classified balance sheet for Alpha Co., we organize assets and liabilities into current and long-term categories. Assets typically include current assets like cash and accounts receivable, long-term assets like land, and other assets such as merchandise inventory. Liabilities are similarly categorized into current liabilities, like accounts payable, and long-term liabilities, such as long-term notes payable. Shareholders' equity consists of common stock and retained earnings.
Assets
- Current Assets:
- Cash: $17,500
- Accounts Receivable: $40,830
- Merchandise Inventory: $27,750
- Long-term Assets:
- Land: $28,840
Liabilities and Shareholders' Equity
- Current Liabilities:
- Accounts Payable: $7,740
- Long-term Liabilities:
- Long-term Notes Payable: $24,500
- Shareholders' Equity:
- Common Stock: $43,000
- Retained Earnings: $39,680