The following accounts and account balances were listed in the accounting records of the Lawrence Custom Carpenters on 31 December 20X1.

Required:
a Prepare a classified balance sheet for Lawrence Custom Carpenters on 31 December 20X1.
b The Lawrence Custom Carpenters is applying for a \(\$ 3000\) short-term loan at a local bank. If you were the banker, would you grant a loan to the business? Explain your decision using what you learned in this chapter about evaluating a business' liquidity.

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Salaries payable Accounts receivable Investment in government bonds (due 31/12/20X5) Accounts payable Unearned revenue Building (net) Interest payable (due 1/9/20X2) Cash Notes payable (due 31/12/20X3) GST paid GST collected PAYG tax payable Shop equipment (net) Prepaid insurance 1650 16 950 45 000 11 550 1 500 55 500 300 9150 500 3 000 4 500 3.000 21 000 1 350 22