These items are taken from the financial statements of Donovan Co. at December 31, 2007.

Building $105,800 Accounts receivable 12,600 Prepaid insurance 4,680 Cash 16,840 Equipment 82,400 Land 61,200 Insurance expense 780 Depreciation expense 5,300 Interest expense 2,600 Common stock 62,000 Retained earnings (January 1, 2007)

Accumulated depreciation—building Accounts payable Mortgage payable Accumulated depreciation—equipment Interest payable Bowling revenues Instructions 40,000 45,600 9,500 93,600 18,720 3,600 19,180 Prepare a classified balance sheet. Assume that $13,600 of the mortgage payable will be paid in 2008.