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

Instructions

a. Prepare a classified balance sheet; assume that $22,000 of the note payable will be paid in 2021.

b. Comment on the liquidity of the company.

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Debit Credit $ 90,000 Buildings $128,800 Common Stock 14,520 Retained Earnings Accounts 25,000 Receivable Prepaid Insurance 4,680 Accumulated Depreciation- Buildings 42,600 Cash 18,040 Accounts Payable 12,300 Equipment 62,400 Notes Payable 67,000 Accumulated Depreciation- Equipment 780 Interest Payable 97,780 Land 18,720 Insurance Expense 2,600 Depreciation 7,360 Service Revenue 17.180 Expense Interest Expense 2,600 $306,180 $306,180