Question

Selected accounts from the Pearson, Gomez, and Litt Partnership adjusted trial balance for the year ended December 31 follow.

Accounts payable	$	5,000			Accounts receivable	$	10,000
Cash		40,000			Gomez, Capital		15,000
Land		25,000			Long-term notes payable		20,000
Pearson, Capital		30,000			Litt, Capital		5,000

Prepare a classified balance sheet.

Answer 1

Ans.	Pearson, Gomez and Litt Partnership Firm
	Balance Sheet
	For the Year Ended December 31
	Assets
	Current assets :
	Cash	$40,000
	Accounts receivables	$10,000
	Total current assets		$50,000
	Non current assets :
	Land		$25,000
	Total Assets		$75,000
	Liabilities and Stockholder's Equity
	Current Liabilities:
	Accounts payable	$5,000
	Long term liabilities :
	Long term notes payable	$20,000
	Total Liabilities		$25,000
	Stockholder's equity:
	Pearson, capital	$30,000
	Gomez, capital	$15,000
	Litt, capital	$5,000
	Total Stockholder's Equity		$50,000
	Total Liabilities and Stockholder's Equity		$75,000