The adjusted trial balance for Karr Bowling Alley at December 31, 2011, contains the following accounts.

Instructions
(a) Prepare a classified balance sheet; assume that $13,900 of the note payable will be paid in 2012.
(b) Comment on the liquidity of thecompany.

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Debits Credits Building Accounts Receivable Prepaid Insurance Cash Equipment Land Insurance Expense Depreciation Expense 7360 Bowling Revenues Interest Expense $128,800 Common Stock $100,000 15,000 42,600 12,300 97,780 64,000 Accumulated Depreciation-Equipmn 18,720 2.600 14.180 $303,180 14,520 Retained Earnings 4,680 Accumulated Depreciation-Building 18,040 Accounts Payable 62.400 Note Payable 780 Interest Payable 2,600 $303,180