Question

Instructions Prepare a classified balance sheet in good form. (No monetary amounts are to be shown.) P5.2 (LO 2) Excel (Balance Sheet Preparation) Presented below are a number of balance sheet items for Montoya, 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) $ 125,000 177,591 300,000 15,000 360,000 480,000 445,700 265,000 490,000 ? 97,630 1,600,000 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 $ 292,000 239,800 45,000 98,362 480,000 200,000 150,000 87,920 1,470,000 121,000 270,200 1,640,000

Answer 1

1. Balance Sheet -

Montoya, Inc. Balance Sheet As at 2020 Asset Current Assets: Cash Prepaid Expense Inventory Notes Receivable Debt Investments (Trading) Total Current Assets $360,000 $ 87,920 $ 239,800 $ 445,700 $ 121,000 $1,254,420 Land $ 480,000 Building $ 1,640,000 (-) Accumulated Depreciation - Building $ (270,200) $1,369,800 Equipment $ 1,470,000 (-) Accumulated Depreciation - Equipment $ (292,000) $1,178,000 Goodwill $ 125,000 Total Assets $ 4,407,220 Liabilities and Shareholder's Equity Current Liabilities: Accounts Payable Income Tax Payable (Net) Rent Payable Payroll Tax Payable Bond Payable Discount on Bonds Payable Notes Payable (To Bank) Total Current Liabilities $ 490,000 $ 732 $ 45,000 $ 177,591 $ 300,000 $ (15,000) $285,000 $ 265,000 $1,263,323 Long Term Liabilities: Notes Payable (Long Term) Rent Payable (Long Term) $ 1,600,000 $ 480,000 $2,080,000 Total Liabilities $3,343,323 Shareholder's Equity: Common Stock Preferred Stock Retained Earnings $ 200,000 $ 150,000 $ 713,897 $1,063,897 Total Liabilities and Shareholder's Equity $4,407,220