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