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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 the order of liquidity. List Property, Plant and Equipment in order of Land, Building and Equipment.)

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Answer:

BALANCE SHEET

ASSETS

Non_Current Assets $3,719,500

Property, Plant and Equipment $3,027,800

Buildings 1640000

Accumulated depreciation - 270200

Carrying Value 1,369,800

Land 480,000

Equipment 1470000

Accumulated depreciation -292000

Carrying value 1,178,000

Debt Investment $ 121,000

Goodwill $ 125,000

Notes receivable $ 445,700

Current Assets $839,350

Inventory $293,800

Prepaid expense $87,920

Cash $360,000

Income taxes receivable $97,630

Total Assets $4,558,850

EQUITY AND LIABILITIES

EQUITY

Common stock $200,000

Retained earnings(loss) - $612,102

Preferred stock(10*150000) $1,500,000

Equity and reserves $1,087,898

LIABILITIES

Non_current liabilities $2,380,000

Bonds payable $300,000

Rent Payable $480,000

Notes Payable $1,600,000

Current Liabilities $1,090,952

Accounts payable $490,000

Payroll taxes payable $177,591

Rent payable $45,000

Discount on bond payable $15,000

Income taxes payable $98,362

Notes payable $265,000

Total equity and liabilities $4,558,850

Retained earnings is the balancing figure

Step-by-step explanation:

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P5-2 (LO3) EXCEL (Balance Sheet Preparation) Presented below are a number of balance sheet items for Montoya, Inc., for the current year, 2017. 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 Instructions 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 equity investments (trading) are the same.

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