Question

Selected accounts from Lue Co.’s adjusted trial balance for the year ended December 31 follow. Prepare a classified balance sheet.

Total equity	$	31,000			Employee federal income taxes payable	$	9,800
Equipment		41,000			Federal unemployment taxes payable		310
Salaries payable		35,000			FICA—Medicare taxes payable		510
Accounts receivable		7,300			FICA—Social Security taxes payable		3,700
Cash		53,100			Employee medical insurance payable		3,000
Current portion of long-term debt		5,000			State unemployment taxes payable		2,700
Notes payable (due in 6 years)		10,000			Sales tax payable (due in 2 weeks)		380

Answer 1

Answer : Preparation of Classified balance sheet of Lue Co.'s as on December 31

LUE CO.
BALANCE SHEET
December 31
ASSETS
Current asset :
Cash	$     53,100
Accounts receivable	$       7,300
Total current asset	$     60,400
Plant assets :
Equipment	$     41,000
Total assets	$   101,400
LIABILITIES
Current liabilities :
Salaries payable	$     35,000
Current Portion of Long term debt	$       5,000
Employee federal income taxes payable	$       9,800
Federal unemployment taxes payable	$           310
FICA-medicare taxes payable	$           510
FICA-Social security taxes payable	$       3,700
Employee medical insurance payable	$       3,000
State unemployment taxes payable	$       2,700
Sales tax payable (due in two weeks)	$           380
Total current liabilites	$     60,400
Long term liabilities :
Note payable (due in 6 years)	$     10,000
Total liabilities	$     70,400
Equity
Total equity	$     31,000
Total liabilities and equity	$   101,400