These items are taken from the financial statements of Windsor, Inc. at December 31, 2017.

Buildings

$97,336

Accounts receivable

11,592

Prepaid insurance

2,944

Cash

10,893

Equipment

75,808

Land

56,304

Insurance expense

718

Depreciation expense

4,876

Interest expense

2,392

Common stock

55,200

Retained earnings (January 1, 2017)

36,801

Accumulated depreciation-buildings

41,952

Accounts payable

8,740

Notes payable

86,112

Accumulated depreciation-equipment

17,222

Interest payable

3,312

Service revenue

13,524

Prepare a classified balance sheet. Assume that $12,512 of the note payable will be paid in 2018. (List current assets in order of liquidity and property plant and equipment in order of land, buildings and equipment.)

To make balance sheet we first have to calculate net income/net profit for the year.

Net profit Calculation

Service revenue $ 13,524

Insurance expense ($ 718)

Depreciation expense ($ 4,876)

Interest expense ($ 2,392)

Profit $ 5,538

Balance Sheet

Asset

Non-Current Asset

Land $56,304

Buildings $97,336

Accumulated depreciation-buildings ($41,952)

Equipment $75,808

Accumulated depreciation-equipment ($17,222)

Total non Current Asset $170,274

Current Asset

Cash $10,893

Accounts receivable $11,592

Prepaid insurance $2,944

Current Asset $25,429

Total Asset $195,703

Equity

Common stock $55,200

Retain Earning (36,801+5,538) $42,339

Total Equity $97,539

Liability

Non-Current Liability

Current Liability

Accounts payable $8,740

Notes payable $86,112

Interest payable $3,312

Total Current Liability $98,164

Total Liability + Equity $195,703