Using the information shown in the picture, prepare a classified balance sheet for Thompson Company as of December 31, 2019 that includes the following subcategories: Current assets, Investments, Property Plant & Equipment, Intangible assets, Current liabilities, Long-term liabilities and Owner’s Equity to answer the question that follows. Prepaid Rent200 Franchise3,600Cash400 Land4,000Marketable Securities800 Investment in Land Held for future use5,400Revenues Received in Advance800 Inventory6,000Accounts Receivable1,600 Notes Payable (in two years)8,000Accumulated Depreciation- Building 2,000 Building16,000Accounts Payable3,200 Jane Thompson, Capital24,000

Total assets = Total liabilities + Total stockholders equity/Owner;s equity

Answered: Prepaid Rent 200 Franchise 3,600 Cash…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Using the information shown in the picture, prepare a classified balance sheet for Thompson Company as of December 31, 2019 that includes the following subcategories: Current assets, Investments, Property Plant & Equipment, Intangible assets, Current liabilities, Long-term liabilities and Owner’s Equity to answer the question that follows.

Prepaid Rent
200 Franchise
3,600
Cash
400 Land
4,000
Marketable Securities
800 Investment in Land Held for future use
5,400
Revenues Received in Advance
800 Inventory
6,000
Accounts Receivable
1,600 Notes Payable (in two years)
8,000
Accumulated Depreciation- Building 2,000 Building
16,000
Accounts Payable
3,200 Jane Thompson, Capital
24,000

Definition Definition Financial statement that provides a snapshot of an organization's financial position at a specific point in time. It summarizes a company's assets, liabilities, and shareholder's equity, detailing what the company owns, what it owes, and what is left over for its owners. The balance sheet serves as a crucial tool to assess the financial health and stability of a company, as well as to help management make informed decisions about its future investments and financial obligations.

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