The adjusted trial balance for Karr Bowling Alley at December 31, 2008, contains the following accounts.

Instructions

(a) Prepare a classified balance sheet; assume that $13,900 of the note payable will be paid

(b) in 2009. Comment on the liquidity of the company.

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Debits Credits Building $128,800 Sue Karr, Capital $115,000 Accounts Receivable 14,520 Prepaid Insurance 4,680 Accounts Payable Cash 18,040 Note Payable Equipment 62,400 Accumulated Depreciation-Building Accumulated Depreciation-Equipment 42,600 12,300 97,780 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