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

Instructions

(a) Prepare a classified balance sheet; assume that $20,000 of the note payable will be paid in 2018.

(b) Comment on the liquidity of the company.

Transcribed Image Text:

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 12,300 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 S307,380 Interest Expense $307,380