Prepare a classified balance sheet and liquidity of company

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Reference no: EM13522076

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

Debits


Credits


Buildings

$128,800

Owner's Capital

$115,000

Accounts Receivable

14,520

Accumulated Depreciation-Buildings

42,600

Prepaid Insurance

4,680

Accounts Payable

12,300

Cash

18,040

Notes Payable

97,780

Equipment

62,400

Accumulated Depreciation-Equipment

18,720

Land

67,000

Interest Payable

2,600

Insurance Expense

780

Service Revenue

17,180

Depreciation Expense

7,360


$306,180

Interest Expense

2,600




$306,180



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 the company.

Reference no: EM13522076

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