Reference no: EM132502415

Question 1: From the account balances below, show a proper balance sheet and income statement with proper headings for ACME, Incorporated for the period ending 12-31-2010. This was the entity's first year of operations. All items are expressed in thousands of dollars. Classify your balance sheet. CL=Current Liability, LTL = long term liability. PP&E = long term asset.

Property, Plant & Equipment (PP&E)                          100

Sales                                                                   100

Notes payable (CL)                                                   20

Accounts receivable                                               28

Inventory                                                             20

Depreciation expense                                             20

Mortgages owed (LTL)                                           116

Cash                                                                   30

Taxes payable                                                       15

Accumulated depreciation                                       20

Rent expense                                                           10

Cost of goods sold                                                 45

Retained earnings                                                   7

Conferences attended expense                                4

Interest expense                                                  7

Auto expense                                                     5

Messenger service expense                                  2