Using the Following Data,prepare a Classified Balance Sheet for Blanchard

question 56

Essay

Using the following data,prepare a classified balance sheet for Blanchard Corporation as of December 31,2010.
$\begin{array}{lr}\text { Cash } & \$ 200 \\\text { Investments in Short-Term } & 400 \\\text { Government Securities } & \\\text { Accounts Receivable } & 800 \\\text { Inventory } & 3,000 \\\text { Prepaid Rent } & 100 \\\text { Investment in Land Held } & 2,700 \\\text { for future use } & \\\text { Land } & 2,000 \\\text { Building } & 8,000\end{array}\begin{array}{lr}\text { Accumulated Depreciation- } & \$ 1,000 \\\text { Building } & \\\text { Franchise } & 1,800 \\& \\\text { Accounts Payable } & 1,600 \\\text { Revenues Received in Advance } & 400 \\\text { Notes Payable (in two years) } & 4,000 \\\text { Common Stock- \$10 par value, } & 10,000 \\& \\\text { Retained Earnings }&2,000\end{array}$

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Definitions:

Equilibrium Price

The price at which the quantity of a good or service demanded by consumers equals the quantity supplied by producers, leading to market equilibrium.

Equilibrium Quantity

The amount of products or services available matches precisely the amount desired by consumers at the current market rate.

Tax

Mandatory financial charge or another type of levy imposed upon a taxpayer by a governmental organization in order to fund government spending and various public expenditures.

Competitive Market

A market structure characterized by a large number of buyers and sellers, freedom of entry and exit, and a product that is homogeneous across suppliers, where no single buyer or seller can influence the market price.