Question

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

Goodwill		$ 125,000		Accumulated Depreciation-Equipment		$ 292,000
Payroll Taxes Payable		177,591		Inventory		239,800
Bonds payable		300,000		Rent payable (short-term)		45,000
Discount on bonds payable		15,000		Income taxes payable		98,362
Cash		360,000		Rent payable (long-term)		480,000
Land		480,000		Common stock, $1 par value		200,000
Notes receivable		445,700		Preferred stock, $10 par value		150,000
Notes payable (to banks)		265,000		Prepaid expenses		87,920
Accounts payable		490,000		Equipment		1,470,000
Retained earnings		?		Debt investments (trading)		121,000
Income taxes receivable		97,630		Accumulated Depreciation-Buildings		270,200
Notes payable (long-term)		1,600,000		Buildings		1,640,000

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.

Answer 1

Balance Sheet
Assets
Current assets
Cash		360000
Notes receivable		445700
Inventory		239800
Debt investments		121000
Total Current assets			1166500
Fixed assets
Land		480000
Building	1640000
Less: Accumulated depreciation	-270200	1369800
Equipment	1470000
Less: Accumulated depreciation	-292000	1178000
Total fixed assets			3027800
Prepaid expenses		87920
Income tax receivable		97630
Total Other assets			185550
Total Assets			4379850
Liabilities
Current liabilities
Accounts payable		490000
Notes payable		265000
Payroll taxes payable		52591
Rent payable		45000
Income taxes payable		98362
Total current liabilties			950953
Long-term liabilities
Bonds payable		285000
Notes payable		1600000
Rent payable		480000
Total Long-term liabilities			2365000
Total Liabilities			3315953
Owners Equity
Common Stock (Authorized 400,000 shares of $1 each)
(Issued and paidup 200,000 shares of $1 each) $200,000		200000
Preferred Stock (Authorized 20,000 shares of $10 each)
(Issued and paidup 15,000 shares of $10 each) $150,000		150000
Retained Earnings		713897	1063897
Total Liabilities and Owner's Equity			4379850