Question

Presented below are a number of balance sheet items for Montoya, Inc. for 2014.

Goodwill $127,970
Accumulated Depreciation-Equipment $292,260
Payroll Taxes Payable 180,561
Inventory 242,770
Bonds payable 302,970
Rent payable (short-term) 47,970
Discount on bonds payable 15,260
Income taxes payable 101,332
Cash 362,970
Rent payable (long-term) 482,970
Land 482,970
Common stock, $1 par value 202,970
Notes receivable 448,670
Preferred stock, $10 par value 152,970
Notes payable (to banks) 267,970
Prepaid expenses 90,890
Accounts payable 492,970
Equipment 1,472,970
Retained earnings ?

Required:
Prepare a 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.

Answer 1

Montoya, Inc.

Balance Sheet

As of December 31, 2014:

Assets:

Current Assets:

Cash $362,970

Notes receivable 448,670

Inventory 242,770

Prepaid expenses 90,890

Total current Assets $1,145,300

Equipment 1,472,970

Accumulated

Depreciation 292,260 1,180,710

Land 482,970

Goodwill 127,970

Total long-term assets $1,791,650

Total assets $2,936,950

Liabilities + Equity:

Current Liabilities:

Accounts payable 492,970

Payroll Taxes Payable 180,561

Income taxes payable 101,332

Rent payable (short-term) 47,970

Discount on bonds payable 15,260

Notes payable (to banks) 267,970

Total current liabilities $1,106,063

Rent payable (long-term) 482,970

Bonds payable 302,970

Total long-term liabilities $785,940

Total liabilities $1,892,003

EQUITY:

Common stock, 400,000 authorized, $1 par value

202,970 issued 202,970

Preferred stock, 200,000 authorized, $10 par value

15,297 issued 152,970

Retained earnings 689,007

Total Equity $1,044,947

Total liabilities and equity $2,936,950

Step-by-step explanation:

a) Data and Calculations:

Cash $362,970

Notes receivable 448,670

Inventory 242,770

Prepaid expenses 90,890

Equipment 1,472,970

Land 482,970

Goodwill 127,970

Accumulated Depreciation-Equipment $292,260

Accounts payable 492,970

Payroll Taxes Payable 180,561

Income taxes payable 101,332

Rent payable (short-term) 47,970

Discount on bonds payable 15,260

Notes payable (to banks) 267,970

Rent payable (long-term) 482,970

Bonds payable 302,970

Common stock, $1 par value 202,970

Preferred stock, $10 par value 152,970

Retained earnings 689,007

Total $3,229,210 $3,229,210