Question

BALANCE SHEET I. Rhonda Rancher has applied for a loan. Her banker, Larry Loanmaker, says the old balance sheet on file must be brought up to date before a loan will be considered. Rhonda spends the rest of the afternoon taking inventory and gathering other information. Complete a balanee sheet on a separate page using the information below compiled by Rhonda on January 22, 2019. 3500 bu. @ $5.00 per bu. 100 tons @ $80.00 per ton Grain on hand Hay on hand Growing wheat Farm mortgage (due/4/1/19) Buildings & improvements Note payable on feeder cattle (all due 4/15/19) Calves (to be sold in May 2019) Feeder cattle (to be sold in 60 days) Note payable at bank (all due 3/1/019) Vehicles Other machinery & equipment Loan on beef cows (due 10/01/19) 200 acres @ S69.80 per acre $13,000 principal $10,000 accrued interest balance after 4/01/19 payment $260,000 $68,000 $45,000 100 head@$605 per head 125 head @ $800 per head $82,000 $30,500 $130,500 $12,000 principal, 2,200 accrued interest balance after 10/1/15 payment $34,000 Land (present market value) Beef breeding cows Bulls Checking account balance Account payable at Joe's Feed & Seed Account receivable Shop Equip. (welder, lathe, drill press, etc.) Corporate Stock 1000 acres @$1800 per acre 110 head @ $1000 per head 4 head @ $2,200 each $33,400 S6,500 $3,600 $5,000 100 shares @ $90 per share Has paid in advance for $6,000 worth of feed in order to get a good price on it. The feed will be delivered in May, 2019. 1) 2) Income and social security taxes on 2018 income (not yet paid) are estimated at $14,200. 3) Rhonda contributed $590,000 to get her business started 4) Retained earnings since the beginning of the business equals $655,000.

Answer 1