Question

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

Goodwill		$ 126,590		Accumulated Depreciation-Equipment		$ 292,240
Payroll Taxes Payable		179,181		Inventory		241,390
Bonds payable		301,590		Rent payable (short-term)		46,590
Discount on bonds payable		15,240		Income taxes payable		99,952
Cash		361,590		Rent payable (long-term)		481,590
Land		481,590		Common stock, $1 par value		201,590
Notes receivable		447,290		Preferred stock, $10 par value		151,590
Notes payable (to banks)		266,590		Prepaid expenses		89,510
Accounts payable		491,590		Equipment		1,471,590
Retained earnings		?		Debt investments (trading)		122,590
Income taxes receivable		99,220		Accumulated Depreciation-Buildings		270,440
Notes payable (long-term)		1,601,590		Buildings		1,641,590

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

Answer 1

Answer:

Swifty, Inc.
Balance sheet
At December 31,2020
Assets			Liabilities and Stockholders' equity
Current assets:			Current liabilities:
Cash	361,590		Accounts payable		491,590
Debt investments (trading)	122,590		Rent payable (short-term)		46,590
Notes receivable	447,290		Payroll Taxes Payable		179,181
Income taxes receivable	99,220		Income taxes payable		99,952
Inventory	241,390		Notes payable (to banks)		266,590
Prepaid expenses	89,510		Total current liabilities			1,083,903
Total current assets		1,361,590	Long-term debt:
Property,plant,and equipment:			Rent payable (long-term)		481,590
Land	481,590		Notes payable (long-term)		1,601,590
Buildings	1,641,590		Bonds payable	301,590
Accumulated Depreciation-Buildings	-270,440		(less): Discount on bonds payable	-15,240	286,350
Equipment	1,471,590		Total long-term debt			2,369,530
Accumulated Depreciation-Equipment	-292,240		Total liabilities			3,453,433
Total property,plant,and equipment		3,032,090
Intangible assets:			Stockholders' equity:
Goodwill		126,590	Common stock, $1 par value		201,590
			Preferred stock, $10 par value		151,590
			Paid in capital		353,180
			Retained earnings*		713,657
			Total stockholders' equity			1,066,837
Total Assets		4,520,270	Total liabilities and stockholders' equity			4,520,270

*Retained earnings:

Total assets = Total liabilities and stockholders' equity

Total liabilities and stockholders' equity = Total liabilities + total stockholders' equity

4,520,270 = 3,453,43 + total stockholders' equity

Total stockholders' equity = 1,066,837

Paid-in capital + Retained earnings = 1,066,837

Retained earnings = 1,066,837-353,180

Retained earnings = 713,657