Presented below are a number of balance sheet items for montoya, inc.,

P5-2 Presented below are a number of balance sheet items for Montoya, Inc., for the current year, 2014.

Goodwill

$125,000 

Accumulated Depreciation – Equipment

$292,000 

Payroll Taxes Payable

177,591

Inventory

239,800

Bonds Payable

300,000

Rent Payable – Short-term

45,000

Discount on Bonds Payable

15,000

Income Tax Payable

98,362

Cash

360,000

Rental Expense Long-term

480,000

Land

480,000

Common Stock, $1 Par Value

200,000

Notes Receivable

445,700

Preferred Stock, $10 Par Value

150,000

Notes Payable to Banks

265,000

Prepaid Expenses

87,920

Accounts Payable

490,000

Equipment

1,470,000

Retained Earnings

?

Equity Investments (Trading)

121,000

Income Taxes Receivable

97,630

Accumulated Depreciation – Buildings

270,200

Unsecured Notes Payable (Long-term)

1,600,000

Buildings

1,640,000

Instructions

Prepare a classified balance sheet in good form. Common stock authorized was400,000shares, 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 marketable securities are the same.

 

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