The adjusted trial balance for Rego Bowling Alley Inc. at December 31, 2006, contains the following accounts.

Instructions

(a) Prepare a classified balance sheet: assume that $13,600 of the mortgage payable will be paid in 2007.

(b) I llll I> Comment on the liquidity of the company.
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Debits Credits Building $128,800 Common Stock $100,000 Accounts Receivable 14.520 Retained Earnings 15,000 Prepaid Insurance Cash Equipment Land Insurance Expense Interest Expense 4.680 Accumulated Depreciation Building 45,600 18,040 Accounts Payable 12,300 62.400 Mortgage Payable 94.780 64.000 Accumulated Depreciation Equipment 18.720 780 Interest Payable 2.600 Depreciation Expense 7,360 Bowling Revenues 14.180 2.600 $303.180 $303.180