Required:
1. Prepare a classified balance sheet at December 31.
2. Are the Sky Blue Corporation's assets financed primarily by debt or equity?

The Sky Blue Corporation has the following adjusted trial balance at December 31. Cash Accounts Receivable Prepaid Insurance Notes Receivable (long-term) Equipment Accumulated Depreciation Accounts Payable Salaries and Wages Payable Income Taxes Payable Deferred Revenue Common Stock Retained Earnings Dividends Sales Revenue Rent Revenue Debit $ 1,320 Credit 2,900 3,200 3,900 16,500 $ 4,400 6,320 1,450 3,800 780 3,300 1,360 390 50,130 390 Salaries and Wages Expense 23,400 Depreciation Expense 2,200 Utilities Expense 5,120 Insurance Expense 2,300 Rent Expense Income Tax Expense Total 6,900 3,800 $ 71,930 $ 71,930 Required: