These items are taken from the financial statements of Longhorn Co. at December 31, 20 17.

Instructions Prepare a classified balance sheet. Assume that $13,600 of the note payable will be paid in 2018.

Transcribed Image Text:

Prepaid insurance Buildings Accounts receivable $105,800 12,600 3,200 Cash 11,840 Equipment 82,400 Land 61,200 Insurance expense 780 Depreciation expense 5,300 Interest expense 2,600 Common stock 60,000 Retained earnings (January 1, 2017) 40,000 Accumulated depreciation-buildings 45,600 Accounts payable 9,500 Notes payable 93,600 Accumulated depreciation-equipment Interest payable Service revenue 18,720 3,600 14,700