Question

Presented below are a number of balance sheet items for Sheridan, Inc. for the current year, 2020. Goodwill Payroll Taxes Payable Bonds payable Discount on bonds payable Cash Land Notes receivable Notes payable (to banks) Accounts payable Retained earnings Income taxes receivable Notes payable (long-term) $ 128,390 180,981 303,390 15,350 363,390 483,390 449,090 268,390 493,390 ? 101,020 1,603,390 Accumulated Depreciation-Equipment Inventory Rent payable (short-term) Income taxes payable Rent payable (long-term) Common stock, $1 par value Preferred stock, $10 par value Prepaid expenses Equipment Debt investments (trading) Accumulated Depreciation-Buildings Buildings $ 292,350 243,190 48,390 101,752 483,390 203,390 153,390 91,310 1,473,390 124,390 270,550 1,643,390 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
MONTOYA, INC.
Balance Sheet
December 31, 2017
	Assets
	Current assets
	Cash				$   363,390
	Equity Investments (Trading)				$   124,390
	Notes Receivable				$   449,090
	Income Taxes Receivable				$   101,020
	Inventory				$   243,190
	Prepaid Expenses				$     91,310
	Total current assets					$1,372,390
	Property, plant, and equipment
	Land				$   483,390
	Buildings			$1,643,390
	Less: Accum Deprec - Buildings			$   270,550	$1,372,840
	Equipment			$1,473,390
	Less: Accum Deprec - Equipment			$   292,350	$1,181,040
						$3,037,270
	Intangible assets
	Goodwill					$   128,390
	Total assets					$4,538,050
	Liabilities and Shareholders’ Equity
	Current liabilities
	Accounts Payable				$   493,390
	Notes Payable to Banks				$   268,390
	Payroll Taxes Payable				$   180,981
	Income Tax Payable				$   101,752
	Rent Payable - Short-term				$     48,390
	Total current liabilities					$1,092,903
	Long-term liabilities
	Unsecured Notes Payable (Long-term)				$1,603,390
	Bonds Payable			$   303,390
	Less: Discount on Bonds Payable			$     15,350	$   288,040
	Rental Payable Long-term				$   483,390	$2,374,820
	Total liabilities					$3,467,723
	Shareholders’ equity
	Capital Stock
	Preferred stock,
				$   153,390
	Common stock
				$   203,390	$   356,780
	Retained Earnings (4538050-3467723-356780)				$   713,547
	Total shareholders’ equity (4538050– $3467723)					$1,070,327
	Total liabilities and shareholders’ equity					$4,538,050