Chapter 4, Problem 4.13EX

To determine

Classified balance sheet

Classified Balance Sheet: In order to improve the ease of understanding, a classified balance sheet is used. Classified balance sheet categorizes each item of assets, liabilities, and stockholders ‘equity into a specific category.

A classified balance sheet is prepared under the following heading:

Assets	Liabilities
Current assets:	Current liabilities:
Cash	Accounts payable
Marketable securities	Interest payable
Accounts receivable	Unearned revenues
Inventories	Notes payable
Prepaid expenses	Current maturities of long-term debt
Office supplies	Total current liabilities
Total current assets
Investments:	Long-term liabilities:
Marketable securities	Bonds payable
Land held for investment	Notes payable
Total investments	Mortgage payable
	Total long-term liabilities
Property, plant and equipment:
Land	Owners’ equity:
Building	Capital
Equipment	Total Liabilities and Owners’ Equity
Less: Accumulated depreciation
Net property, plant and equipment
Intangibles:
Copyrights
Total Assets

Table (1)

To List: The errors in the balance sheet.

To determine

To Prepare: A Corrected balance sheet of L Service Company at August 31, 2016.