Chapter 6, Problem 6.6E

Prepare Balance Sheet. Lake Company provided the following reformation for the current veer ended December 31.

Account	Debit	Credit
Goods payable, due in 10 years		$ 200,975
Investments at fair value (current)	$ 25,000
Accounts payable		135,000
Additional paid-in-capital		400,000
Dividends payable		3,700
Equipment under capital lease	856,800
Intangible assets-net	207,000
Merchandise inventory	667500
Income taxes payable		32,575
Cash	12,750
Accumulated other comprehensive income		70,000
Current portion of long-term debt		100,000
Property, plant, and equipment - net	1,098,000
Investments in affiliate compares	43,000
(noncurrent)
Accounts receivable	60,000
Notes payable, due in 5years		300,000
Retained earnings		701,735
Obligations under capital teases		210,500
Obligations under pension plans		185,400
Deferred tax liability (noncurrent)		16,000
Common stock, $1 par value		664,715
Totals	$2,970,050	$2,970,050

Required

1. a. Prepare the current-year classified balance sheet using the report format.
2. b. Prepare the current year classified balance sheet using the account format.