The adjusted trial balance for Karr Bowling Alley at December 31, 2010, contains the following accounts.
|
Debits |
Credits |
||
|
Building |
$128,800 |
Sue Karr, Capital |
$115,000 |
|
Accounts Receivable |
14,520 |
Accumulated Depreciation—Building |
42,600 |
|
Prepaid Insurance |
4,680 |
Accounts Payable |
12,300 |
|
Cash |
18,040 |
Note Payable |
97,780 |
|
Equipment |
62,400 |
Accumulated Depreciation—Equipment |
18,720 |
|
Land |
64,000 |
Interest Payable |
2,600 |
|
Insurance Expense |
780 |
Bowling Revenues |
14,180 |
|
Depreciation Expense |
7,360 |
$303,180 |
|
|
Interest Expense |
2,600 |
||
|
$303,180 |
Instructions
(a) Prepare a classified balance sheet; assume that $13,900 of the note payable will be paid in 2011.
(b) Comment on the liquidity of the company.