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7. Using the following data, prepare a classified balance sheet for Blanchard Company as of December 31, 20x5.

Cash	$ 200		Accumulated Depreciation Building	$ 1,000
Investments in Short-Term Government Securities	400		Franchise	1,800
Accounts Receivable	800		Accounts Payable	1,600
Inventory	3,000		Revenues Received in Advance	400
Prepaid Rent	100		Notes Payable (in two years)	4,000
Investment in Land Held for future use	2,700		Common Stock	12,000
Land	2,000
Building	8,000

ANS:

Blanchard Company
Balance Sheet
December 31, 20x5
Assets
Current assets
	Cash				$
	Investments in short-term government securities
	Accounts receivable
	Inventory
	Prepaid rent
	Total current assets					$
Investments
	Land held for future use
Property, plant, and equipment
	Land				$
	Building		$
		Less accumulated depreciation
	Total property, plant, and equipment
Intangible assets
	Franchise
Total assets						$
Liabilities
Current liabilities
	Accounts payable		$
	Revenues received in advance
	Total current liabilities				$
Long-term liabilities
	Notes payable (in two years)
Total liabilities						$
Stockholders' Equity
Common stock
Total liabilities and stockholders' equity						$

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