Set out for a composite marine-electronics distributor, AC300's Unit 3 classified balance sheet sorts every account into its section, keeps restricted cash out of current assets, and attaches three notes. Searches like "ac 300 unit 3 assignment example", "ac300 unit 3 sample" and "ac300 unit 3 example" land here.
What a finished AC300 Unit 3 classified balance sheet looks like
Company name, statement title and one balance sheet date sit at the top. Assets come first in four groups. Current assets total 1,010,000 dollars: cash, trading debt securities at fair value, receivables shown net of a 14,000-dollar allowance, inventory and prepaid insurance. Long-term investments hold 150,000 of cash restricted for a warehouse expansion and 220,000 of land bought for a future site. Property, plant and equipment follows net of accumulated depreciation, then a purchased customer list. Total assets reach 2,940,000. Claims follow in three groups: current liabilities of 452,000, including a 22,000 overdraft at a bank where the company holds no other account and the 80,000 current portion of its mortgage; long-term debt of 1,320,000; and stockholders' equity of 1,168,000. Three short notes sit beneath the statement.
How a AC300 Unit 3 example is structured
Assets follow the order of liquidity and claims the order of maturity, the convention most US textbooks use. The two reclassifications are the reason the problem exists, so each appears in its new section with a bracketed reference to a note. The restricted cash moves because management cannot spend it on operations, and the land moves because nobody uses it to run the business yet. On the claims side, the mortgage is split in two, the principal due within twelve months shown as current and the remainder as long-term. The overdraft stays a liability instead of reducing cash, since the two balances sit at different banks. After the statement, the three notes cover the restriction, the inventory method and a five-year schedule of debt maturities. A final line states the current ratio of 2.23.
Current assets in liquidity order
Cash, trading securities at fair value, receivables net of the allowance, inventory and prepaid insurance, totaling 1,010,000 dollars. Nothing restricted or long-dated is allowed into this group.
Two items moved to investments
Cash set aside for a warehouse expansion and land bought for a future site leave the groups they were first listed in. Each carries a bracketed pointer to its note.
Plant assets and a purchased list
Buildings and equipment shown at cost less accumulated depreciation, land at cost, and the customer list bought from a competitor at its unamortized amount.
Current claims, split mortgage included
Payables, the overdraft, accrued wages, customer deposits, income taxes and the 80,000 of mortgage principal due within a year, totaling 452,000 dollars.
Long-term debt and equity
The remaining mortgage principal and a bank note due in four years, then common stock, paid-in capital in excess of par and retained earnings, closing at 2,940,000.
Three notes and a ratio
The restriction's purpose, the inventory cost method and five years of debt maturities. A last line computes the current ratio at 2.23 from the classified totals.
Where marks go in AC300 Unit 3
Restricted cash left among current assets is the first thing a grader checks, because it inflates liquidity: here the current ratio would rise from 2.23 to 2.57 with no change in the company's position. Netting the overdraft against cash held at another bank is the next deduction, since offset is allowed only for balances at the same institution. A mortgage reported entirely as long-term, with no current portion carved out, costs points in almost every section. Land held for a future site listed with operating land loses marks as well, because the heading claims a use that does not exist. A statement that balances but carries no notes gives up the disclosure marks this course weights heavily. Contra accounts shown as liabilities, or a missing date line, are minor but visible slips.
Get a AC300 Unit 3 example written to your instructions
Account balances alone are not quite enough for Unit 3: classification turns on whatever the instructions say about restrictions, refinancing and debt terms, so include those with the rubric. The statement and its notes follow within 24-48h in report form unless told otherwise, and no fee applies to a first custom sample.
AC300 Unit 3 questions, answered
Why is restricted cash not a current asset?
Because current assets are resources expected to be used or converted within the operating cycle or a year, and cash set aside for a warehouse cannot be spent on operations. Where a restriction ends within a year and the related spending is itself current, some problems allow a current classification. Either way, the restriction's purpose is stated in a note, following the facts given.
Should the balance sheet be in account form or report form?
Either is acceptable unless the instructions specify. Account form places assets on the left and claims on the right; report form stacks them vertically, which suits a page or a spreadsheet better. Report form is used here so the notes can sit directly beneath the totals, and because many AC300 sections submit in a document where a wide two-column layout breaks awkwardly.
What if the trial balance has an account the textbook never classified?
Classify it by what it represents, not by its name. The cash surrender value of a life insurance policy is a long-term investment even though it sounds like cash; a customer deposit is a liability even though it arrived as cash. A footnote accompanies any account whose placement required judgment, so a grader can see the reasoning behind a less familiar line.