The adjusted balances at December 31, 2020, for Derlak Enterprises are shown in alphabetical order below:

Required

Prepare a comparative classified balance sheet at December 31, 2020.

Analysis Component: Are Derlak?s assets financed mainly by debt or equity in 2019? in 2020? Is the change in how assets were financed from 2019 to 2020 favourable or unfavourable? Explain.

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2019 2019 2020 2020 Lee Derlak, withdrawals. Notes payable, due in 2023 Office supplies. Operating expenses. Patent. Prepaid rent. Salaries payable. Service revenue Tools Vehicles Accounts payable. Accumulated amortization, franchise. Accumulated amortization, patent. Accumulated depreciation, equipment. Accumulated depreciation, tools.. Accumulated depreciation, vehicles. Cash. $ 56,800 $ 9,600 11,200 2,400 64,800 42,400 $ 32,000 $ 38,400 129,600 19,200 4,000 240,000 2,400 2,320 780,800 16,000 571,200 16,000 48,000 26,400 72,800 44,800 108,800 97,600 40,000 12,000 32,800 28,800 Equipment. Franchise. Lee Derlak, capital". 184,000 100,000 720,000 753,600 143,920 252,800 41,600 41,600 100,800 206,320 62,320 252,800 *The owner, Lee Derlak, made no additional Investments during the year.