The adjusted trial balance for Martell Bowling Alley at December 31, 2014, 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 |
|
|
|
|
| Interest Expense |
|
2,600 |
|
|
|
|
|
|
$306,180 |
|
|
|
$306,180 |
(b) Comment on the liquidity of the company.