The balances on December 31, 2022 are available for Engineering LLC:1. Accounts payable$2,5502. Accounts receivable3,5506,2503. Accumulated depreciation4. Retained earnings, Dec. 31, 2021 6,4505. Cash2,30052,3002,5008,80029,00010,7001,1506. Cost of goods sold7. Depreciation expense8. Dividends declared9. Equipment10. Income tax expense11. Interest expense12. Inventory13. Long-term notes payable14. Paid-in capital15. Prepaid rent16. Rent expense17. Sales18. Wage expense19. Wages payableRequired:For each account balance above show in the table below whether it should be treated in theincome statement or on the balance sheet. State the reason for your classification. Calculatethe total current assets. Number 5 is done for you as an example..No6,25011,5004,4503504,000120,00041,9003,000Account titleWhich Financial statement?Reason

Income statement holds items of expense and income nature. Balance sheet holds items of asset and…

Required: For each account balance above show in the table below whether it should be treated in the income statement or on the balance sheet. State the reason for your classification. Calculate the total current assets. Number 5 is done for you as an example. No Account title Which Financial statement? Reason

Required: For each account balance above show in the table below whether it should be treated in the income statement or on the balance sheet. State the reason for your classification. Calculate the total current assets. Number 5 is done for you as an example. No Account title Which Financial statement? Reason

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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Concept explainers

Bookkeeping

Bookkeeping is the process of recording the financial transactions of a company on a regular basis. With the process of bookkeeping, companies can track important financial information that helps management in making crucial decisions.

Question

The balances on December 31, 2022 are available for Engineering LLC:
1. Accounts payable
$2,550
2. Accounts receivable
3,550
6,250
3. Accumulated depreciation
4. Retained earnings, Dec. 31, 2021 6,450
5. Cash
2,300
52,300
2,500
8,800
29,000
10,700
1,150
6. Cost of goods sold
7. Depreciation expense
8. Dividends declared
9. Equipment
10. Income tax expense
11. Interest expense
12. Inventory
13. Long-term notes payable
14. Paid-in capital
15. Prepaid rent
16. Rent expense
17. Sales
18. Wage expense
19. Wages payable
Required:
For each account balance above show in the table below whether it should be treated in the
income statement or on the balance sheet. State the reason for your classification. Calculate
the total current assets. Number 5 is done for you as an example..
No
6,250
11,500
4,450
350
4,000
120,000
41,900
3,000
Account title
Which Financial statement?
Reason

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