The following accounts are taken from the financial statements of Trump Entertainments Resorts, Inc., at its September 30, 2008, year-end. (Amounts are in thousands.)

The following accounts are taken from the financial statements of Trump Entertainments Resorts, Inc., at its September 30, 2008, year-end. (Amounts are in thousands.)

General expenses	$	176,703
Salaries payable		26,513
Interest expense		79,552
Accounts payable		38,739
Other current liabilities		136,863
Food and beverage revenue		77,816
Cash		275,489
Accounts receivable		45,880
Other current assets		25,182
Property and equipment		1,985,231
Long-term note payable		1,702,506
Contributed capital		14
Retained earnings		427,147

 

Required:
(a)	Prepare a classified balance sheet at September 30, 2008. (TIP: Some of the above accounts are not reported on the balance sheet.) (Enter your answers in thousands. Be sure to list the assets and liabilities in order of their liquidity. Omit the "$" sign in your response.)

Trump Entertainments Resorts Inc. Balance Sheet At September 30, 2008 (in thousands)
Assets				Liabilities
Current Assets				Current Liabilities
Cash	$			Accounts payable	$
Accounts receivable				Salaries payable
Other current assets				Other current liabilities
Total Current Assets				Total Current Liabilities
				Long-term notes payable
				Total Liabilities
				Stockholders’ Equity
Property and equipment				Contributed capital
				Retained earnings
				Total Stockholders’ Equity
Total Assets	$			Total Liabilities & Stockholders’ Equity	$

 

(b)	Using the balance sheet, indicate whether the total assets of Trump Entertainments Resorts, Inc. at the end of the year were financed primarily by liabilities or stockholders' equity.

 

The total assets were financed primarily by liabilities.

 

Explanation:

As of September 30, 2008, liabilities have provided the primary source of financing for Trump Entertainments Resorts, Inc. The company has financed $1,904,621 of its assets with liabilities and only $427,161 with stockholders' equity.