What is a classified balance sheet?
Classified balance sheet is type of balance sheet which places the assets and liabilities as per the specific category.
Financial statements are prepared at the of the accounting period, to report the performance of the business. It includes balance sheet, income statement and retained earnings.
Under classified balance sheet, assets of the entity are reported as per the liquidity, and liabilities are reported as per the payment schedule. Assets are classified into current assets, long term assets, property, plant and equipment and intangible assets. Liabilities are classified into current liabilities and Long-term liabilities
E4-20 Preparing financial statements from the completed worksheet Use your answer from Exercise E4-19 to prepare Data Solution’s financial statements. Requirements 1. Complete the income statement for the month ended November 30, 2018. 2. Complete the statement of retained earnings for the month ended November 30, 2018. Assume beginning Retained Earnings was $0. 3. Complete the classified balance sheet as of November 30, 2018. Use the report form.
Question: Refer to the Practice Set data provided in Chapters 2 and 3 for Crystal Clear Cleaning.
1. Prepare a worksheet (optional) at November 30, 2018. Use the unadjusted trial balance from Chapter 2 and the adjusting entries from Chapter 3.
2. Prepare an income statement and statement of retained earnings for the month ended November 30, 2018. Also prepare a classified balance sheet at November 30, 2018, using the report format. Assume the Notes Payable is long-term. Use the worksheet prepared in Requirement 1 or the adjusted trial balance from Chapter 3.
3. Prepare closing entries at November 30, 2018, and post to the accounts. Open T-accounts for Income Summary and Retained earnings. Determine the ending balance in each account. Denote each closing amount as Clos. and each account balance as Balance.
4. Prepare a post-closing trial balance at November 30, 2018.
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