The Following Accounts Are on the Balance Sheet Section of Marble

question 107

Essay

The following accounts are on the Balance Sheet section of Marble Company worksheet for the month ended August 31, 2020.
Required: Prepare a classified balance sheet.
$$\begin{array}{l}\text { BALANCE SHEET }\\\begin{array} { l c r } \text { ACCOUNT } & \text { Debit } & \text { Credit } \\\text { Cash } & 4 & \\\text { Accounts Receivable } & 7 & \\\text { Merchandise Inventory } & 4 & \\\text { Store Equipment } & 12 & \\\text { Accum. Dep., Store Equip. } & & 4 \\\text { Accounts Payable } & & 5 \\\text { Mortgage Payable } & & 13 \\\text { Appleton. Capital } & & 3\\\hline\end{array}\end{array}$$

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Definitions:

Current Assets

Assets that are expected to be converted into cash, sold, or consumed within one year or within the normal operating cycle of a business.

Debt Securities

Financial instruments representing money borrowed that must be repaid, often with interest, including bonds, bills, and notes.

Fair Value

The estimated price at which an asset can be bought or sold in a current transaction between willing parties.

Unrealized Gain

The increase in value of an asset or investment that has not been sold, therefore not yet generating actual profit.