1.Use the following information to create a balance sheet. The business and personal assets are kept separate. The information below relates only to the business. All the information is on a cost basis.

(note: I would set up a balance sheet with places for current and non-current assets and liabilities and owner equity. I would then put all the information below in the appropriate sections. Then complete the Asset side of the balance sheet. Finally complete the Liability and owner equity side.)

Prepaid expenses	3,000	Accounts payable	5,000
Investment in growing crops	20,000	Land	510,000
Notes payable (due within 12 months)	56,000	Current portion term debt (this includes what will be paid next year on all non-current debt)	8,000
Mortgages (doesnt include portion to be paid in the next 12 months)	243,000
		Accrued interest	21,000
Notes (due beyond 12 months)	128,000	Income tax payable	?
Machinery and Equipment	190,000	Accounts Receivable	27,000
Cash	23,000	Buildings	140,000
Supplies	?	Total current assets	163,000
Deferred tax on current assets	34,000	Owner Equity	499,000