P5-2 Statement of financial position items for Montoya Inc. follow for the current year, 2017:

Instructions:
(a) Prepare a classified statement of financial position in good form. The numbers of authorized shares are as follows: unlimited common and 20,000 preferred. Assume that income tax accounts, notes receivable, and notes payable are short-term, unless stated otherwise, and that the fair value - net income investments are stated at fair value.
(b) What additional disclosure would you expect to provide for the rental obligation?

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2 Payroll taxes payable Bonds payable due 2021 Discount on bonds payable 5 Rent payable (long-term) Common Shares (20,000 shares is Preferred shares (15,000 shares issued) 9 sued200,000 0 2 Income tax receivable Notes payable (due in five years) Accumulated depreciation- building 1,600,000