Question

Problem 5-2

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

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. (List Current Assets in order of liquidity. List Property, Plant and Equipment in order of Land, Building and Equipment.)

Goodwill

 

$ 129,160

 

Accumulated Depreciation-Equipment

 

$ 292,306

Payroll Taxes Payable

 

181,751

 

Inventory

 

243,960

Bonds payable

 

304,160

 

Rent payable (short-term)

 

49,160

Discount on bonds payable

 

15,306

 

Income taxes payable

 

102,522

Cash

 

364,160

 

Rent payable (long-term)

 

484,160

Land

 

484,160

 

Common stock, $1 par value

 

204,160

Notes receivable

 

449,860

 

Preferred stock, $10 par value

 

154,160

Notes payable (to banks)

 

269,160

 

Prepaid expenses

 

92,080

Accounts payable

 

494,160

 

Equipment

 

1,474,160

Retained earnings

 

?

 

Equity investments (trading)

 

125,160

Income taxes receivable

 

101,790

 

Accumulated Depreciation-Buildings

 

270,506

Notes payable (long-term)

 

1,604,160

 

Buildings

 

1,644,160

 

 



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