Demonstration Problems

A partial worksheet showing the end of year operating results for Lin Chang Company for 20X7 follows:

Instructions:

1. Prepare a classified income statement. Lin Chang Company does not divide its operating expenses into selling and administrative expenses.
2. Prepare a statement of owner’s equity. No additional investments were made during the period.
3. Prepare a classified balance sheet. All notes payable are due within one year.

Worksheet Year Ended December 31, 20X7

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