The adjusted trial balance for Carter Bowling Alley at December 31, 2020, contains the following accounts.

Instructions
a. Prepare a classified balance sheet; assume that $30,000 of the note payable will be paid in 2021.
b. Comment on the liquidity of the company.

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Debit Credit Owner's Capital Accumulated Depreciation-Buildings Accounts Payable Notes Payable Buildings Accounts Receivable $128,800 $113,000 14,520 42,600 Prepaid Insurance |Cash Equipment 4,680 18,040 12,300 97,780 Accumulated Depreciation-Equipment Interest Payable 62,400 65,000 18,720 3,800 Land Insurance Expense Depreciation Expense Interest Expense 780 Service Revenue 17,180 7,360 3,800 $305,380 $305,380