1. **Problem Statement:** Prepare a classified balance sheet for Jackson Corporation as of December 31, 2013, using the provided post-closing trial balance. 2. **Understanding Classified Balance Sheet:** A classified balance sheet organizes assets and liabilities into current and long-term categories. The main sections are: - Current Assets - Long-term Assets - Current Liabilities - Long-term Liabilities - Stockholders' Equity 3. **Classify Assets:** - Current Assets include Cash, Accounts Receivable, Inventories, Prepaid Rent, Marketable Securities. - Long-term Assets include Machinery (net of accumulated depreciation) and Patent (net of amortization). Calculate net machinery value: $$\text{Net Machinery} = 145,000 - 11,000 = 134,000$$ 4. **Classify Liabilities:** - Current Liabilities include Accounts Payable, Wages Payable, Taxes Payable. - Long-term Liabilities include Bonds Payable. 5. **Stockholders' Equity:** - Common Stock and Retained Earnings. 6. **Prepare the Classified Balance Sheet:** **Jackson Corporation** **Classified Balance Sheet** **December 31, 2013** | **Assets** | | **Liabilities and Stockholders' Equity** | | |----------------------------|-----------|------------------------------------------|-----------| | **Current Assets:** | | **Current Liabilities:** | | | Cash | 40,000 | Accounts Payable | 8,000 | | Accounts Receivable | 34,000 | Wages Payable | 4,000 | | Inventories | 75,000 | Taxes Payable | 32,000 | | Prepaid Rent | 16,000 | **Total Current Liabilities** | 44,000 | | Marketable Securities | 10,000 | | | | **Total Current Assets** | 175,000 | **Long-term Liabilities:** | | | **Long-term Assets:** | | Bonds Payable (due in 10 years) | 200,000 | | Machinery (net) | 134,000 | **Total Long-term Liabilities** | 200,000 | | Patent (net) | 83,000 | | | | **Total Long-term Assets** | 217,000 | **Stockholders' Equity:** | | | **Total Assets** | 392,000 | Common Stock | 100,000 | | | | Retained Earnings | 48,000 | | | | **Total Stockholders' Equity** | 148,000 | | | | **Total Liabilities and Equity** | 392,000 | 7. **Check Balance:** Total Assets $= 175,000 + 217,000 = 392,000$ and Total Liabilities and Equity $= 44,000 + 200,000 + 148,000 = 392,000$, so the balance sheet balances. **Final Answer:** The classified balance sheet is prepared as above with total assets and total liabilities plus equity both equal to 392000.