Using the Following Data,prepare a Classified Balance Sheet as of December

question 12

Essay

Using the following data,prepare a classified balance sheet as of December 31,2010,for the Lee Company.There are 2,000 shares of $10 par value common stock issued and outstanding.
$\begin{array}{lrlr}\text { Accounts Payable } & \$ 1,600 & \text { Accounts Receivable } & 3,000 \\\text { Building Not Currently Used } & 19,000 & \text { Cash } & 5,200 \\\text { Accumulated Depreciation, } & 8,000 & \text { Unearned Revenue } & 800 \\\text { Equipment } & & &\\& & \text { Short-Term Investments } & 2,000 \\\text { Common Stock } & 20,000 & \text { Land } & 16,000 \\\text { Retained Earnings } & 22,600 & \text { Equipment } & 15,000 \\\text { Copyright } & 5,000 & \text { Long-Term Investments } & 800 \\\text { Bonds Payable (due in } 20 & 13,000 & & \\\text {years) } & & & \end{array}$

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Definitions:

Indifference Curves

Graphical representations showing combinations of two goods that provide an individual with the same level of satisfaction, indicating preferences without implying superiority.

Slope

The measure of the steepness or incline of a line or surface, typically described as a ratio of vertical change to horizontal change.

Budget Line

An illustration showing all the combinations of two items that can be bought given certain prices and a specified budget.

Price

The amount of money expected, required, or given in payment for something; it acts as a signal for scarcity or abundance of a product.