A manufacturing company’s balance sheet and income statement differ from those for a merchandising or service company.
Required
I. Fill in the [BLANK] descriptors on the partial balance sheets for both the manufacturing company and the merchandising company. Explain why a different presentation is required.
Manufacturing Company Merchandising Company
Current assets Current assets
. . . $10,000 . . . $ 5,000
[BLANK] 8,000 [BLANK] 12,000
[BLANK] 5,000 Supplies 500
[BLANK] 7,000 Prepaid insurance 500
Supplies 500 Total current assets .... . . . $18,000
500
Total current assets .. .. ... $31,000