Use the information in the adjusted trial balance to prepare Sierra Company’s classified balance sheet as of December 31.[The following information applies to the questions displayed below.]The following is the adjusted trial balance of Sierra Company.Sierra CompanyAdjusted Trial BalanceDecember 31Account TitleDebitCreditCash$ 13,000 Prepaid insurance900 Notes receivable (due in 5 years)4,800 Buildings40,000 Accumulated depreciation—Buildings $ 16,000Accounts payable 4,500Notes payable (due in 3 years) 5,000Common stock 10,000Retained earnings 6,500Dividends3,000 Consulting revenue 29,500Wages expense3,900 Depreciation expense—Buildings4,000 Insurance expense1,900 Totals$ 71,500$ 71,500 Required informationCurrent assetsCashPrepaid insuranceTotal current assetsTotal assetsDecember 31Assets$$GA$13,00090013,900013,900

The income statement is a financial statement which shows the total revenue and total expense of the…

Answered: to prepare Sierra Company’s classified…

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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Use the information in the adjusted trial balance to prepare Sierra Company’s classified balance sheet as of December 31.

[The following information applies to the questions displayed below.]

The following is the adjusted trial balance of Sierra Company.

Account Title	Debit	Credit
Sierra Company
Adjusted Trial Balance
December 31
Cash	$ 13,000
Prepaid insurance	900
Notes receivable (due in 5 years)	4,800
Buildings	40,000
Accumulated depreciation—Buildings		$ 16,000
Accounts payable		4,500
Notes payable (due in 3 years)		5,000
Common stock		10,000
Retained earnings		6,500
Dividends	3,000
Consulting revenue		29,500
Wages expense	3,900
Depreciation expense—Buildings	4,000
Insurance expense	1,900
Totals	$ 71,500	$ 71,500

Required information
Current assets
Cash
Prepaid insurance
Total current assets
Total assets
December 31
Assets
$
$
GA
$
13,000
900
13,900
0
13,900

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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