Clear Water Co. reports the following balance sheet accounts as of December 31. Buildings $25,000 Accounts receivable 2,000 Land 11,000 Merchandise inventory 7,000 Accounts payable 5,000 Cash 8,000 Notes payable (due in 7 years) 30,000 Office supplies 1,000 Common stock 10,000 Retained earnings 6,000 Wages payable 3,000Required: Prepare a classified balance sheet.

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Secured loans are protected by collateral security. examples: title loans where the borrower uses the car title as collateral security interest rates are lower and repayments are longer therefore risk is low as a collateral security is given as guarantee to the bank in case of failure to pay the loanunsecured loans are not protected by collateral security but it is given on the creditworthiness of the borrower, trusting that she/he will pay on time. examples; payday loans is a short term loan where the borrower lends money from the bank and pays is back when the borrower receives his/her wages.interest rates are high and repayments are shorter. but the risk is high as no collateral security is given as a guarantee to the bank for payment of the loan