Question

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 aftermoon taking inventory and gathering other information. In a new spreadsheet file, create a current Market Basis balance sheet for Rhonda dated February 1, 2020. Do not use any pre made templates. I want you to create the balance sheet from scratch. Use the current and non-current classifications of assets and liabilities. (60 points) Milo on hand 4200 cwt. @ $4.40 per cwt. 75 tons @ S110.00 per ton Hay on hand Growing wheat Farm mortgage principal (due 4/01) 280 acres @ $22.50 per acre $14,000 principal $20,000 accrued interest balance after 4/01 payment $208,000 Buildings & improvements Note payable on feeder cattle (all due 11/15) Calves (to be sold in May) Feeder cattle (to be sold in 60 days) $48,000 $34,000 98 head @ $275 per head 138 head @ $575 per head Note payable at bank (all due 3/1) Vehicles $52,000 S15,500 Other machinery & equipment Loan on beef cows (due 10/01) S80,500 $9,000 principal, $3,900 accrued interest balance after 10/1 payment $38,000 Land (present market value) Beef breeding cows 1020 acres @ S560 per acre 106 head @ S650 per head 4 head @ $1,000 each Bulls Checking account balance Account payable at Joe's Feed & Seed Account receivable $5,400 $4,200 $1,600

Answer 1

Non current liabilities:	Amt (in $)	Non Current asset:	Amt (in $)
Farm mortagage principal	208000	Buildings and improvements	48000
Loan on beef cows	38000	Vehicles	15500
		Other machinery and equipment	80500
		Land	571200
		Beef breeding cows	68900
		Bulls	4000
		Shop equip.	2000
		Investment ( ford motor co. stock)	13000
Total	246000	Total	803100
Current liabilities:	Amt (in $)	Current asset:	Amt (in $)
Farm mortgage principal (due 4/01)	14000	Calves	26950
Interest accrued	20000	Feeder cattle	79350
Note payable on feeder cattle	34000	Account balance	5400
Note payable @ bank	52000	Milo on hand	18480
Loan on beef(DUE 10/01)	9000	Hay on hand	8250
Interest accrued	3900	Growing wheat	6300
Accounts payable @ joe's feed and seed	4200	Accounts receivable	1600
		Advance paid	6000
Total	137100	Total	152330
Note: the Rhonda contribution and Retained earnings comes under share holder's equity.