Exercise 4-14

The adjusted trial balance for McCoy Bowling Alley at December 31, 2017, contains the following accounts.

Debits

Credits

Buildings

$127,800

Owner's Capital

$116,400Accounts Receivable

14,500

Accumulated DepreciationBuildings

43,500Prepaid Insurance

4,900

Accounts Payable

11,000Cash

19,400

Notes Payable

97,400Equipment

62,700

Accumulated DepreciationEquipment

17,700Land

67,100

Interest Payable

2,600Insurance Expense

500

Service Revenue

16,800Depreciation Expense

6,500

Interest Expense

2,000

$305,400

$305,400

(a)

Prepare a classified balance sheet; assume that $19,000of the note payable will be paid in 2018. (List Current Assets in order of liquidity. List Property, Plant and Equipment in order of Land, Buildings and Equipment.)