From the following, prepare a classified balance sheet for Bach Crawlers as of December 31, 2020. Ending merchandise inventory was $6,500 for the year.

Cash	$	8,500	Accounts payable	$	3,050
Prepaid rent		2,850	Salaries payable		2,850
Prepaid insurance		6,500	Note payable (long term)		10,500
Office equipment (net)		7,500	P. Bach, capital*		15,450

*What the owner supplies to the business. Replaces common stock and retained earnings section.