a classified balance E2-5 These items are taken from the financial statements of Donavan Co. at December 31, 2014 AP Buildings Accounts receivable Prepaid insurance Cash Equipment Land Insurance expense Depreciation expense Interest expense Common stock Retained earnings (January 1, 2014) Accumulated depreciation--buildings Accounts payable Notes payable Accumulated depreciation equipment Interest payable Service revenue $105,800 12,600 3,200 11,840 82,400 61,200 780 5,300 2,600 60,000 40,000 45,600 9,500 93,600 18,720 3,600 14,700 Exercises 79 Instructions Prepare a classified balance sheet. Assume that $13,600 of the note payable will be paid in 2015. E2-8. These financial statement items are for Barfield Corporation at year-end, July 31, 2014. Salaries and wages payable $ 2,080 Salaries and wages expense 57,500 Supplies expense 15,600 Equipment 18,500 Accounts payable 4,100 Service revenue 66,100 Rent revenue 8,500 Notes payable (due in 2017) 1,800 Common stock 16,000 Cash 29,200 Accounts receivable 9,780 Accumulated depreciation equipment 6,000 Dividends 4,000 Depreciation expense 4,000 Retained earnings (beginning of the year) 34,000 Instructions (a) Prepare an income statement and a retained earnings statement for the year. Barfield Corporation did not issue any new stock during the year. (b) Prepare a classified balance sheet at July 31. (c) Compute the current ratio and debt to assets ratio