Hello people im new here, and im studying for an accounting exam, and im studying up and practising but there is one exercise that i cant make heads or tail of it and i hope you guys can help.

This is a partial adjusted trial balance and it shows the necesary accounts to prepare a classified balance sheet.

Audio Concepts
Adjusted Trial Balance (partial)
December 31, 2002

Accounts dr cr
cash 20,000
accounts receivable 11,000
supplies 4,000
prepaid insurance 6,000
audio equipment 205,000
Accumulated depreciation -audio equip 29,000
Accounts payable 19,000
notes payable 70,000
salaries payable 3,000
j franco capital 112,000
j franco drawings 14,000


i need to prepare a clasified balance sheet assuming the company had a net income of 27,000 for the year and the notes payable due on 5 years


thanks and any and all help is appreciated

lnguyen

Balance Sheet breaks down three categories: asset= Liability+SE

Asset

Current Asset (classify the ones that easily convert into cash fast first)
Cash 20000
AR 11000
Supplies 4000
Prepaid Insurance 6000
Total Current Assets 41000

Property,plant, and Eqipment
Audio Equipment 205000
Less: Audio Accu. Depre (29000)
Total Property, Plant, and Equipment 176000

Total Assets 217000

Liability and Stockholder Equity

Current Liability (Due less than a year or fiscal year, which ever comes first)
Account Payable 19000
Salaries payable 3000
Total Current Liability 22000

Long-Term Liability (More than a year)
Notes payable 70000

Total Liability 92000

Stockholder Equity
J Franco Capital 112000
Less: J Franco drawings (14000)
Retained Earnings 27000
Total Stockholder Equity 125000

Total liability and Stockholder's Equity 217000


Now, notice that Total Assets ($217000) = total liability and SE ($217000)

Hope this help...gl.