Classified Balance SheetHas the data grouped according to major categories

We have already been introduced to the report form of the balance sheet. It is when the information is presented in a one-above-the-other, or vertical, format.

Major CategoriesAssets:

Current assets- unrestricted cash, an asset that will be converted into cash within one year, or an asset that will be used up within one yearExamples: Bank, Accounts

Receivable

Fixed assets- a long-term asset held for its usefulness in producing goods or services. Same as Plant and Equipment

LiabilitiesCurrent liability- a short-term debt, payment of which is expected to occur within one yearExamples: Bank Loan,

Accounts Payable

Long-term liability- a liability which, in the ordinary course of business, will not be paid within one yearExample: Mortgage

Payment

Assets

Current Assets

Bank $ 1,750

Accounts Receivable 35,879

Supplies 1,350 $ 38,979

Fixed Assets

Building $ 55,000

Equipment 15,070

Automobile 33,350

Land (least liquid) 40,000 143,420

Total Assets $ 182,399

Liabilites and Owner's Equity

Current Liabilities

Bank Loan $ 25,000

Accounts Payable 9,088

HST Payable (add PST payable) $ 1,393

Less HST Recoverable 279 1,114

Mortage Instalment (current) 850 $ 36,052

Long-Term Liability Mortgage Payment 80,000

Total Liabilities $ 116,052

J. Otto, Capital

Balance January 1 $ 50,287

Net Income $ 38,560

Drawings 22,500

Increase in Equity 16,060

Balance December 31 66,347

Total Liabilites and Owner's Equity $ 182,399

Peoples’ Security Company

Classified Balance Sheet

December 31, 2011

Heading

Assets < 1 year (very liquid)

Assets > 1 year

Debts to be paid within 1 year (short term)

Debts > 1 year

Net Income > Drawings

Global LogisticsClassified Balance SheetDecember 31, 20-4

AssetsCurrent Assets Bank $ 3,457.15 Accounts Receivable 19,402.50 Supplies 1,240.00 Total Current Assets $ 24,099.65 Fixed Assets Equipment 20,400.00 Automobiles 32,936.57 Total fixed assets 53,336.57 Total Assets $ 77,436.22

Liabilities and Owner's EquityCurrent Liabilities Bank Loan $ 10,000.00 Accounts Payable 5,296.10 HST Payable $ 1,198.83 Less: HST Recoverable 351.12 Remittance 847.71 Total Liabilities $ 16,143.81 R. Tessier, CapitalBeginning Capital $ 49,713.40 Net Income $ 35,579.01 R. Tessier, Drawings 24,000.00 Increase in Capital 11,579.01 Ending Capital 61,292.41 Total Liabilities and Owner's Equity $ 77,436.22

For tomorrow:Complete Exercise #1, 2 p. 276 (t), p.192-193 (w)

Start exercise #2 ‘Ying Lo’ p. 292 (t) p. 202-204 (w) * Check posted answers on board