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April 1, 2021
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April 1, 2021

The adjusted trial balance for Wootton Bowling Alley at December 31, 2012, contains the following accounts.

Debits

Credits

Buildings

$128,800

Owner’s Capital

$115,000

Accounts Receivable

14,520

Accumulated Depreciation—Buildings

42,600

Prepaid Insurance

4,680

Accounts Payable

12,300

Cash

18,040

Notes Payable

97,780

Equipment

62,400

Accumulated Depreciation—Equipment

18,720

Land

67,000

Interest Payable

2,600

Insurance Expense

780

Service Revenue

17,180

Depreciation Expense

7,360

$306,180

Interest Expense

2,600

$306,180

Instructions

(a) Prepare a classified balance sheet; assume that $22,000 of the note payable will be paid in 2013.

(b) Comment on the liquidity of the company.

 

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