Listed in random order are the items to be included in the balance sheet of Rocky Mountain

Question:

Listed in random order are the items to be included in the of Rocky Mountain Lodge at December 31, year 1.

Instructions
a. Prepare a balance sheet at December 31, year 1. Include a proper heading and organize your balance sheet similar to Exhibit 2-9. You will need to compute the amount to be shown for Retained Earnings.
b. Assume that no payment is due on the notes payable until year 3. Does this balance sheet indicate that the company is in a strong financial position as of December 31, year 1? Explain briefly.

Balance Sheet
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial...