Question

Using the information below, compile the Classified Statement of Financial Position for this new business, ABC Limited, in good form, for the month ended Sept 30, 2020: (All accounts have been listed alphabetically and have normal balances)

Accounts Payable	$       30,000
Accounts Receivable	$         8,000
Accumulated Depreciation (Equipment)	$         5,000
Cash	$       65,000
Common Shares	$     100,000
Cost of Goods Sold	$       18,000
Depreciation Expense	$         5,000
Equipment	$       80,000
Inventory	$       12,000
Notes Payable (due Dec 31, 2021)	$       20,000
Sales	$       40,000
Wages Expense	$         7,000

Answer 1

ABC Limited
Financial Position
At September 30, 2020
Assets		Liabilities and stockholders' equity
Current assets:		Current liabilities:
Cash	$65,000	Accounts payable	$30,000
Accounts receivable	$8,000	Long-term liabilities:
Inventory	$12,000	Notes payable	$20,000
Total current assets	$85,000	Total liabilities	$50,000
Property, plant and equipment:
Equipment	$80,000	Stockholders' Equity:
Accumulated depreciation-Equipment	($5,000)	Common shares	$100,000
Total property, plant and equipment	$75,000	Retained earnings [Diff.]	$10,000
		Total stockholders' equity	$110,000
Total assets	$160,000	Total liabilities and stockholders' equity	$160,000