Question

Current Attempt in Progress

Presented below are a number of balance sheet items for Sarasota, Inc. for the current year, 2020.

Goodwill		$ 126,300		Accumulated Depreciation-Equipment		$ 292,150
Payroll Taxes Payable		178,891		Inventory		241,100
Bonds payable		301,300		Rent payable (short-term)		46,300
Discount on bonds payable		15,150		Income taxes payable		99,662
Cash		361,300		Rent payable (long-term)		481,300
Land		481,300		Common stock, $1 par value		201,300
Notes receivable		447,000		Preferred stock, $10 par value		151,300
Notes payable (to banks)		266,300		Prepaid expenses		89,220
Accounts payable		491,300		Equipment		1,471,300
Retained earnings		?		Debt investments (trading)		122,300
Income taxes receivable		98,930		Accumulated Depreciation-Buildings		270,350
Notes payable (long-term)		1,601,300		Buildings		1,641,300

Prepare a classified balance sheet in good form. Common stock authorized was 400,000 shares, and preferred stock authorized was 20,000 shares. Assume that notes receivable and notes payable are short-term, unless stated otherwise. Cost and fair value of debt investments (trading) are the same. (List Current Assets in order of liquidity. List Property, Plant and Equipment in order of Land, Building and Equipment.)

Answer 1

Sarasota, Inc.
Balance Sheet
2020

Assets
Current Assets:
Cash	$361,300
Debt Investments (Trading)	$122,300
Notes Receivables	$447,000
Income Tax Receivable	$98,930
Inventory	$241,400
Prepaid Expenses	$89,220
Total Current Assets		$1,360,150
Property, Plant, and Equipment:
Land		$481,300
Buildings	$1,614,300
Less: Accumulated Depreciation	($270,350)	$1,343,950
Equipment	$1,471,300
Less: Accumulated Depreciation	($292,150)	$1,179,150
Intangible Assets
Goodwill		$126,300
Total Assets		$4,490,850
Liabilities and Stockholders' Equity
Current Liabilities:
Accounts Payable	$491,300
Notes Payable (to bank)	$266,300
Payroll Taxes Payable	$178,891
Income Tax Payable	$99,662
Rent Payable (short-term)	$46,300
Total Current Liabilities		$1,082,453
Long-term Liabilities
Notes Payable (long-term)		$1,601,300
Bonds Payable	$301,300
Less: Discount on Bonds Payable	($15,150)	$286,150
Rent Payable (long-term)		$481,300
Total Liabilities		$3,451,203
Stockholders' Equity
Common Stock, $1 par value	$201,300
Preferred Stock, $10 par value	$151,300
Retained Earnings (W. 1)	$687,047
Total Stockholders' Equity		$1,039,647
Total Liabilities and Stockholders' Equity		$4,490,850

Workings:

1. Retained Earnings

Total Assets	$4,490,850
Less: Total Liabilities	($3,451,203)
Less: Common Stock	($201,300)
Less: Preferred Stock	($151,300)
Retained Earnings	$687,047