Problem:
Presented below are a number of balance sheet items for Montoya, Inc., for the current year, 2014.
| Goodwill |
|
$ 127,260 |
|
Accumulated Depreciation-Equipment |
|
$ 292,466 |
| Payroll Taxes Payable |
|
179,851 |
|
Inventory |
|
242,060 |
| Bonds payable |
|
302,260 |
|
Rent payable (short-term) |
|
47,260 |
| Discount on bonds payable |
|
15,466 |
|
Income taxes payable |
|
100,622 |
| Cash |
|
362,260 |
|
Rent payable (long-term) |
|
482,260 |
| Land |
|
482,260 |
|
Common stock, $1 par value |
|
202,260 |
| Notes receivable |
|
447,960 |
|
Preferred stock, $10 par value |
|
152,260 |
| Notes payable (to banks) |
|
267,260 |
|
Prepaid expenses |
|
90,180 |
| Accounts payable |
|
492,260 |
|
Equipment |
|
1,472,260 |
| Retained earnings |
|
? |
|
Equity investments (trading) |
|
123,260 |
| Income taxes receivable |
|
99,890 |
|
Accumulated Depreciation-Buildings |
|
270,666 |
| Notes payable (long-term) |
|
1,602,260 |
|
Buildings |
|
1,642,260 |
Required:
Question: 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 equity investments (trading) are the same.
Note: Be sure to show how you arrived at your answer.