Your lawn care business, A Cut Above, has grown beyond your wildest dreams—to the point where you would like to buy some
new equipment and hire some people to help you. Unfortunately, you don’t have that kind of money sitting around, so you are
applying for a loan. The bank has requested financial statements, including, of course, a balance sheet. The following are the
balances you have on 5/31. Prepare a classified balance sheet to submit to the bank.
Cash $2,400
Prepaid Insurance $1,400
Note Payable Due Two Years from Now (Loan from Mom) $5,000
Capital Stock (Money You Invested to Start Business) $2,000
Accounts Receivable $500
Supplies Inventory $300
Equipment, Net $3,000
Accounts Payable $300
Retained Earnings $300