FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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![Required information
[The following information applies to the questions displayed below.]
The Sky Blue Corporation has the following adjusted trial balance at December 31.
K
Cash
Accounts Receivable
Prepaid Insurance
Notes Receivable (long-term)
Equipment
Accumulated Depreciation
Accounts Payable
Salaries and Wages Payable
Income Taxes Payable
Deferred Revenue
Common Stock
Retained Earnings
Dividends
Sales Revenue
Rent Revenue
Salaries and Wages Expense
Depreciation Expense.
Utilities Expense
Insurance Expense
Rent Expense
Income Tax Expense
Total
Required:
Debit
$ 1,420
3,900
4,200
4,900
21,500
Required 1 Required 2
490
25,400
3,200
3,300
7,900
4,800
$ 87,130
Credit
< Prev
$ 6,400
7,320
1,950
4,800
980
4,300
1,760
59,130
490
1. Prepare a classified balance sheet at December 31.
2. Are the Sky Blue Corporation's assets financed primarily by debt or equity?
$ 87,130
Prepare a classified balance sheet at December 31. (Amounts to be deducted should be indicated by a min
6 7
13
MacBook Air
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Transcribed Image Text:Required information
[The following information applies to the questions displayed below.]
The Sky Blue Corporation has the following adjusted trial balance at December 31.
K
Cash
Accounts Receivable
Prepaid Insurance
Notes Receivable (long-term)
Equipment
Accumulated Depreciation
Accounts Payable
Salaries and Wages Payable
Income Taxes Payable
Deferred Revenue
Common Stock
Retained Earnings
Dividends
Sales Revenue
Rent Revenue
Salaries and Wages Expense
Depreciation Expense.
Utilities Expense
Insurance Expense
Rent Expense
Income Tax Expense
Total
Required:
Debit
$ 1,420
3,900
4,200
4,900
21,500
Required 1 Required 2
490
25,400
3,200
3,300
7,900
4,800
$ 87,130
Credit
< Prev
$ 6,400
7,320
1,950
4,800
980
4,300
1,760
59,130
490
1. Prepare a classified balance sheet at December 31.
2. Are the Sky Blue Corporation's assets financed primarily by debt or equity?
$ 87,130
Prepare a classified balance sheet at December 31. (Amounts to be deducted should be indicated by a min
6 7
13
MacBook Air
Next >
Expert Solution
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Step 1
Balance sheet
An accounting record that is prepared by bifurcating the statement into assets, liabilities and equity is called as balance sheet. When the main heads are further divided into various sub-categories, then the statement is referred to as classified balance sheet.
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