Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

BALANCE SHEET I. Rhonda Rancher has applied for a loan. Her banker, Larry Loanmaker, says the old balance sheet on file must be brought up

image text in transcribed
BALANCE SHEET I. Rhonda Rancher has applied for a loan. Her banker, Larry Loanmaker, says the old balance sheet on file must be brought up to date before a loan will be considered. Rhonda spends the rest of the afternoon taking inventory and gathering other information. He completed the balance sheet (market basis) using the information below compiled by Rhonda on September, 23, 2015. Please answer the questions in the spaces provided on the next pages. Milo on hand Hay on hand Growing wheat Farm mortgage (due 12/01/15) 5000 ewt. a $4.50 per ewt. 22.50o 100 tons @ $65.00 per ton 50o 100 acres @ $70.00 per acre 7000 $10,500 principal S6,000 accrued interest Buildings & improvements Note payable on feeder cattle (all due 11/15/15) Calves (to be sold in 30 days) Feeder cattle (to be sold in 60 days) Note payable at bank (all due 12/15/15) Vehicles Other machinery&equipment Loan on beef cows (due 10/01/15) balance after 12/01/15 payment $565,000 $98,000 $39,600 90 head@ $595 per head 120 head @ $1,100 per head $99,000 $89,500 $510,500 $29,000 principal, $1,500 accrued interest balance after 10/1/15 payment $92,000 500 acres @ $3000 per acre Land (present market value) Beef breeding cows Bulls Checking account balance Account payable at Joe's Feed & Seed Account receivable Shop Equip. (welder, lathe, drill press, etc.) Corporate Stock 110 head @ S1200 per head 4 head @ $2,800 each $10,500 $6,100 S3.200 $4,500 300 shares@ $105 per share Has paid in advance for $3,000 worth of feed in order to get a good price on it. The feed will be delivered in November, 2015. 1) 2) Taxes owed, but not yet paid, are estimated at $29,200 3) Rhonda contributed $810.000 to get her business started. 4) Retained earnings since the beginning of the business equals $545,000. tera asset/ e ra 0t

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

College Accounting Chapters 1 24

Authors: Douglas J. Mcquaig, Patricia Bille, Tracie L. Nobles

10th Edition

1439037752, 9781439037751

More Books

Students also viewed these Accounting questions

Question

(a) p = .233 = .818 p = .709 p = .387

Answered: 1 week ago

Question

What is meant by planning or define planning?

Answered: 1 week ago

Question

Define span of management or define span of control ?

Answered: 1 week ago

Question

What is meant by formal organisation ?

Answered: 1 week ago

Question

What is meant by staff authority ?

Answered: 1 week ago