Question

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

Debits				Credits
Buildings		$127,000		Owner’s Capital		$118,900
Accounts Receivable		15,000		Accumulated Depreciation—Buildings		42,400
Prepaid Insurance		4,900		Accounts Payable		11,800
Cash		19,100		Notes Payable		96,800
Equipment		62,400		Accumulated Depreciation—Equipment		17,700
Land		68,200		Interest Payable		3,000
Insurance Expense		500		Service Revenue		15,500
Depreciation Expense		6,500
Interest Expense		2,500
		$306,100				$306,100

(a)

Prepare a classified balance sheet; assume that $29,900 of the note payable will be paid in 2021. (List Current Assets in order of liquidity. List Property, Plant and Equipment in order of Land, Buildings and Equipment.)

WILDHORSE BOWLING ALLEY Balance Sheet December 31, 2020Fot the Month Ended December 31, 2020Fot the Year Ended December 31, 2020
Assets
Current AssetsCurrent LiabilitiesIntangible AssetsLong-term InvestmentsLong-term LiabilitiesProperty, Plant and EquipmentOwner’s EquityTotal AssetsTotal Current AssetsTotal Current LiabilitiesTotal Intangible AssetsTotal LiabilitiesTotal Liabilities and Owner’s EquityTotal Long-term InvestmentsTotal Long-term LiabilitiesTotal Property, Plant and EquipmentTotal Owner’s Equity
			$
Current Assets    Current Liabilities    Intangible Assets    Long-term Investments    Long-term Liabilities    Property, Plant and Equipment    Owner’s Equity    Total Assets    Total Current Assets    Total Current Liabilities    Total Intangible Assets    Total Liabilities    Total Liabilities and Owner’s Equity    Total Long-term Investments    Total Long-term Liabilities    Total Property, Plant and Equipment    Total Owner’s Equity					$
Current AssetsCurrent LiabilitiesIntangible AssetsLong-term InvestmentsLong-term LiabilitiesProperty, Plant and EquipmentOwner’s EquityTotal AssetsTotal Current AssetsTotal Current LiabilitiesTotal Intangible AssetsTotal LiabilitiesTotal Liabilities and Owner’s EquityTotal Long-term InvestmentsTotal Long-term LiabilitiesTotal Property, Plant and EquipmentTotal Owner’s Equity
	$
Add    Less     :
Add    Less     :
Current Assets    Current Liabilities    Intangible Assets    Long-term Investments    Long-term Liabilities    Property, Plant and Equipment    Owner’s Equity    Total Assets    Total Current Assets    Total Current Liabilities    Total Intangible Assets    Total Liabilities    Total Liabilities and Owner’s Equity    Total Long-term Investments    Total Long-term Liabilities    Total Property, Plant and Equipment    Total Owner’s Equity					$
Liabilities and Owner's Equity
Current AssetsCurrent LiabilitiesIntangible AssetsLong-term InvestmentsLong-term LiabilitiesProperty, Plant and EquipmentOwner’s EquityTotal AssetsTotal Current AssetsTotal Current LiabilitiesTotal Intangible AssetsTotal LiabilitiesTotal Liabilities and Owner’s EquityTotal Long-term InvestmentsTotal Long-term LiabilitiesTotal Property, Plant and EquipmentTotal Owner’s Equity
			$
Current Assets    Current Liabilities    Intangible Assets    Long-term Investments    Long-term Liabilities    Property, Plant and Equipment    Owner’s Equity    Total Assets    Total Current Assets    Total Current Liabilities    Total Intangible Assets    Total Liabilities    Total Liabilities and Owner’s Equity    Total Long-term Investments    Total Long-term Liabilities    Total Property, Plant and Equipment    Total Owner’s Equity					$
Current AssetsCurrent LiabilitiesIntangible AssetsLong-term InvestmentsLong-term LiabilitiesProperty, Plant and EquipmentOwner’s EquityTotal AssetsTotal Current AssetsTotal Current LiabilitiesTotal Intangible AssetsTotal LiabilitiesTotal Liabilities and Owner’s EquityTotal Long-term InvestmentsTotal Long-term LiabilitiesTotal Property, Plant and EquipmentTotal Owner’s Equity
Current Assets    Current Liabilities    Intangible Assets    Long-term Investments    Long-term Liabilities    Property, Plant and Equipment    Owner’s Equity    Total Assets    Total Current Assets    Total Current Liabilities    Total Intangible Assets    Total Liabilities    Total Liabilities and Owner’s Equity    Total Long-term Investments    Total Long-term Liabilities    Total Property, Plant and Equipment    Total Owner’s Equity
Current AssetsCurrent LiabilitiesIntangible AssetsLong-term InvestmentsLong-term LiabilitiesProperty, Plant and EquipmentOwner’s EquityTotal AssetsTotal Current AssetsTotal Current LiabilitiesTotal Intangible AssetsTotal LiabilitiesTotal Liabilities and Owner’s EquityTotal Long-term InvestmentsTotal Long-term LiabilitiesTotal Property, Plant and EquipmentTotal Owner’s Equity
Current Assets    Current Liabilities    Intangible Assets    Long-term Investments    Long-term Liabilities    Property, Plant and Equipment    Owner’s Equity    Total Assets    Total Current Assets    Total Current Liabilities    Total Intangible Assets    Total Liabilities    Total Liabilities and Owner’s Equity    Total Long-term Investments    Total Long-term Liabilities    Total Property, Plant and Equipment    Total Owner’s Equity					$

Answer 1

Answer:
Particulars	Amount (in $ )	Amount (in $ )
Service revenue		$ 15,500
Less: Operating expenses
- Insurance expense	$ 50
- Depreciation expense	$ 6,500
Total Operating expenses		($ 7,000)
Operating income		$ 8,500
Less: Interest expense		($ 2,500)
Net Income		$ 6,000
Add: Beginning Owner's Capital		$ 118,900
Less: Dividends		$ 0
Ending owner's Capital		$ 124,900
WILDHORSE BOWLING ALLEY Balance Sheet December 31, 2020
Assets
Current assets
- Cash		$ 19,100
- Account receivable		$ 15,000
- Prepaid insurance		$ 4,900
Total Current assets			$ 39,000
Non Current assets
- Land		$ 68,200
Buildings	$ 127,000
Less : Accumlated Depreciation- Buildings	($ 42,400)	$ 84,600
Equipment	$ 62,400
Less: Accumlated Depreciation- Equipment	($ 17,700)	$ 44,700	$ 197,500
Total Assets			$ 236,500
Liabilities and owner's equity
Current liabilities
- Account payable		$ 11,800
- Interest payable		$ 3,000
- Notes payable		$ 29,900
Total Current liabilites			$ 44,700
Long term liabilities
- Notes payable               ( $ 96,800 (-) $ 29,900)			$ 66,900
Total Liabilities			$ 111,600
Owner's Equity
- Owner's capital			$ 124,900
Total Liabilities and Owner's equity			$ 236,500