7 - Balance sheet question The adjusted trial balance for...

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The adjusted trial balance for Karr bowling Alley at December 31, 2008, contains the following accounts. As Debit Building 128,800. Accounts receivable 14,520. Prepaid insurance 4,680. Cash 18,040. Equipment 62,400. Land 64,000. Insurance expense 780. Depreciation expense 7,360. Interest expense 2,600. Debit total: 303,180 As Credit Common stock 100,000. Retained earnings 15,000. Accumulated Depreciation-building 42,600. Accounts payable 12,300. Note payable 97,780. Accumulated depreciation – equipment 18,720. Interest payable 2,600. Service revenue 14,180. Credit total: 303,180 There are question. 1. Prepare a classified balance sheet; assume that $13,900 of the note payable will be paid in 2009. 2. Comment on the liquidity of the company. --------------------------------------… Answer 1. This is what I worked. ASSETS: Cash 18,040 Accounts Receivable 14,520 Prepaid Insurance 4,680 Building (net) 86,200 Equipment (net) 43, 680 Land 64,000 Total assets 231,120
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7 - Balance sheet question The adjusted trial balance for...

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