The adjusted trial balance for Wootton Bowling Alley at December 31, 2012, contains the following accounts.

Instructions

(a) Prepare a classified balance sheet; assume that $22,000 of the note payable will be paid in 2013.

(b) Comment on the liquidity of thecompany.

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Debits Credits Owner's Capital Accumulated Depreciation-Buildings Accounts Payable Notes Payable Accumulated Depreciation-Equipment Interest Payable Service Revenue Buildings Accounts Receivable Prepaid Insurance Cash Equipment Land Insurance Expense Depreciation Expense Interest Expense $115,000 $128,800 4,680 18,040 62,400 12.300 97.780 18,720 2,600 17.180 67,000 780 7.360 2,600 $306,180 $306,180