Balance sheet classification
Response to the following problem:
Refer to the situation described in problem 1. Determine the year-end balance in retained earnings for K and J Nursery, Inc.
Problem. 1:
Balance sheet classification
The trial balance for K and J Nursery, Inc., listed the following account balances at December 31, 2016, the end of its fiscal year: cash, $16,000; accounts receivable, $11,000; inventories, $25,000; equipment (net), $80,000; accounts payable, $14,000; wages payable, $9,000; interest payable, $1,000; note payable (due in 18 months), $30,000; common stock, $50,000.
Calculate total current assets and total current liabilities that would appear in the company's year-end balance sheet.