E4-7 The adjusted trial balance for Summit's Bowl-A-Drome Alley at December 31, 2002, con- tains the following accounts: Debits Accounts Receivable Amortization Expense Building Cash Equipment Insurance Expense Interest Expense Land Prepaid Insurance $ 14,520 5,360 128,800 20,840 62,400 780 2,600 63,200 4,680 $303,180 Accounts Payable Accumulated Amortization- Credits Building Accumulated Amortization- Equipment Bowling Revenues Interest Payable Mortgage Payable T. Bolgos, Capital $ 13,480 45,600 18,720 14,180 2,600 93,600 115,000 $303,180 Instructions (a) Prepare a classified balance sheet. Assume that $13,600 of the mortgage payable will be paid in the year 2003. Compare current assets and current liabilities and comment on the liquidity of the company.

E4-7 The adjusted trial balance for Summit's Bowl-A-Drome Alley at December 31, 2002, con- tains the following accounts: Debits Accounts Receivable Amortization Expense Building Cash Equipment Insurance Expense Interest Expense Land Prepaid Insurance $ 14,520 5,360 128,800 20,840 62,400 780 2,600 63,200 4,680 $303,180 Accounts Payable Accumulated Amortization- Credits Building Accumulated Amortization- Equipment Bowling Revenues Interest Payable Mortgage Payable T. Bolgos, Capital $ 13,480 45,600 18,720 14,180 2,600 93,600 115,000 $303,180 Instructions (a) Prepare a classified balance sheet. Assume that $13,600 of the mortgage payable will be paid in the year 2003. Compare current assets and current liabilities and comment on the liquidity of the company.

College Accounting, Chapters 1-27

23rd Edition

ISBN:9781337794756

Author:HEINTZ, James A.

Publisher:HEINTZ, James A.

Chapter16: Accounting For Accounts Receivable

Section: Chapter Questions

Problem 8SPA: UNCOLLECTIBLE ACCOUNTSALLOWANCE METHOD Pyle Nurseries used the allowance method to record the...

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