On December 1, 2025, Crane Company had the account balances shown below. Cash Accounts Receivable Inventory Equipment Dec. 3 5 1 2 7 3. Inventory (2,700 × $0.60) The following transactions occurred during December. 17 22 - Adjustment data: Debit $5,250 Accumulated Depreciation-Equipment Accounts Payable Common Stock Retained Earnings 3,860 1,620 20,400 $31,130 4 Credit $1.370 Purchased 3,700 units of inventory on account at a cost of $0.77 per unit. Sold 4,100 units of inventory on account for $0.90 per unit. (Crane sold 2,700 of the $0.60 units and 1,400 of the $0.77 units.) Accrued salaries and wages payable $420. Depreciation on equipment $180 per month. Income tax expense was $190, to be paid next year. 2,760 10,000 17,000 $31,130 Granted the December 5 customer $90 credit for 100 units of inventory returned costing $77. These units were returned to inventory. Purchased 2,100 units of inventory for cash at $0.70 each. Sold 1,800 units of inventory on account for $0.88 per unit. (Crane sold 1,800 of the $0.77 units.)

FINANCIAL ACCOUNTING
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ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Prepare a classified balance sheet at December 31, 2025. (List current assets in order of liquidity.)
Show Transcribed Text
3
CRANE COMPANY
Balance Sheet
Assets
Ĉ
L
$
Liabilities and Stockholders' Equity
$
S
$
Transcribed Image Text:Prepare a classified balance sheet at December 31, 2025. (List current assets in order of liquidity.) Show Transcribed Text 3 CRANE COMPANY Balance Sheet Assets Ĉ L $ Liabilities and Stockholders' Equity $ S $
On December 1, 2025, Crane Company had the account balances shown below.
Cash
Accounts Receivable
Inventory
Equipment
Dec. 3
5
1
2.
Inventory - (2.700 × $0.60)
The following transactions occurred during December.
7
3.
17
22
Adjustment data:
Debit
$5,250 Accumulated Depreciation-Equipment
Accounts Payable
Common Stock
Retained Earnings
3,860
1,620
20,400
$31,130
k
Credit
$1,370
Accrued salaries and wages payable $420.
Depreciation on equipment $180 per month.
Income tax expense was $190, to be paid next year.
2,760
Purchased 3,700 units of inventory on account at a cost of $0.77 per unit.
Sold 4,100 units of inventory on account for $0.90 per unit. (Crane sold 2,700 of the $0.60 units and 1,400 of the $0.77
units.)
10,000
17,000
$31,130
Granted the December 5 customer $90 credit for 100 units of inventory returned costing $77. These units were
returned to inventory.
Purchased 2,100 units of inventory for cash at $0.70 each.
Sold 1,800 units of inventory on account for $0.88 per unit. (Crane sold 1,800 of the $0.77 units)
Transcribed Image Text:On December 1, 2025, Crane Company had the account balances shown below. Cash Accounts Receivable Inventory Equipment Dec. 3 5 1 2. Inventory - (2.700 × $0.60) The following transactions occurred during December. 7 3. 17 22 Adjustment data: Debit $5,250 Accumulated Depreciation-Equipment Accounts Payable Common Stock Retained Earnings 3,860 1,620 20,400 $31,130 k Credit $1,370 Accrued salaries and wages payable $420. Depreciation on equipment $180 per month. Income tax expense was $190, to be paid next year. 2,760 Purchased 3,700 units of inventory on account at a cost of $0.77 per unit. Sold 4,100 units of inventory on account for $0.90 per unit. (Crane sold 2,700 of the $0.60 units and 1,400 of the $0.77 units.) 10,000 17,000 $31,130 Granted the December 5 customer $90 credit for 100 units of inventory returned costing $77. These units were returned to inventory. Purchased 2,100 units of inventory for cash at $0.70 each. Sold 1,800 units of inventory on account for $0.88 per unit. (Crane sold 1,800 of the $0.77 units)
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