Exercise 4-14

The adjusted trial balance for Karr Bowling Alley at December 31, 2010, contains the following accounts.

Debits            Credits

Building         $128,800                  Sue Karr, Capital     $115,000

Accounts Receivable          14,520                       Accumulated Depreciation-Building        42,600

Prepaid Insurance   4,680             Accounts Payable   12,300

Cash  18,040                       Note Payable            97,780

Equipment    62,400                       Accumulated Depreciation-Equipment   18,720

Land   64,000                       Interest Payable       2,600

Insurance Expense 780                Bowling Revenues  14,180

Depreciation Expense        7,360                         $303,180

Interest Expense      2,600                          

            $303,180                               

Prepare a classified balance sheet; assume that $13,900 of the note payable will be paid in 2011.  (List assets in order of liquidity and liabilities from largest to smallest eg 10, 5, 3, 2.)

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