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

Instructions
(a) Prepare a classified statement of financial position; assume that £15,000 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 Prepaid Insurance Cash Equipment Land Insurance Expense Depreciation Expense Interest Expense £128,000 Share Capital-Ordinary £ 80,000 28,000 42,600 12,300 95,000 67,000 Accumulated Depreciation-Equipment 18,720 2,600 19,180 £298,400 7,540 Retained Earnings 4,680 Accumulated Depreciation-Buildings 18,040 Accounts Payable 62,400 Notes Payable 780 Interest Payable 7,360 Service Revenue 2,600 £298,400