Exercise 2-5

These items are taken from the financial statements of Donavan Co. at December 31, 2014.

Buildings		$104,742
Accounts receivable		12,474
Prepaid insurance		3,168
Cash		11,722
Equipment		81,576
Land		60,588
Insurance expense		772
Depreciation expense		5,247
Interest expense		2,574
Common stock		59,400
Retained earnings (January 1, 2014)		39,600
Accumulated depreciationbuildings		45,144
Accounts payable		9,405
Notes payable		92,664
Accumulated depreciationequipment		18,533
Interest payable		3,564
Service revenue		14,553

Prepare a classified balance sheet. Assume that $13,464 of the note payable will be paid in 2015. (List current assets in order of liquidity and property plant and equipment in order of land, buildings and equipment.)