E4-14

ompleting the Accounting Cycle Debit Credit Buildings Accounts Receivable 14,520 Accumulated Depreciation-Buildings 42,600 Prepaid Insurance $128,800 Owner's Capital $115,000 4,680 Accounts Payable 18,040 Notes Payable Cash Equipment Land 97,780 62,400 Accumulated Depreciation-Equipment 18,720 3,800 67,000 Interest Payable Insurance Expense 780 Service Revenue Depreciation Expense 7,360 3,800 17,180 $307,380 Interest Expense $307,380 Instructions (a) Prepare a classified balance sheet; assume that $20,000 of the note payable will be paid in 2018. (b)-C Comment on the liquidity of the company unts on balance E4-15 The following are the major balance sheet classifications Current assets (CA) Long-term investments (LTI) Current liabilities (CL) Long-term liabilities (LTL)