The adjusted trial balance for Rego Bowling Alley at December 31, 2014, contains the following accounts.

Debits Credits Buildings $128,000 Common Stock $ 80,000 Accounts Receivable 7,540 Retained Earnings 28,000 Prepaid Insurance 4,680 Accumulated Depreciation—Buildings 42,600 Cash 18,040 Accounts Payable 12,300 Equipment 62,400 Notes Payable 95,000 Land 67,000 Accumulated Depreciation—Equipment 18,720 Insurance Expense 780 Interest Payable 2,600 Depreciation Expense 7,360 Service Revenue 19,180 Interest Expense 2,600 $298,400

$298,400 a Instructions

(a) Prepare a classified balance sheet; assume that $15,000 of the note payable will be paid in 2015.

(b) LE===> Comment on the liquidity of the company.