BALANCE SHEET PREPARATION

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

Goodwill 125,000

Payroll Taxes 177,591

Bonds payable 300,000

Discount on bonds payable 15,000

Cash 360,000

Land 480,000

Notes receivable 445,700

Notes payable (to banks) 265,000

Accounts payable 490,000

Retained earnings ?

Income Tax receivable 97,630

Notes payable (long -term) 1,600,000

Accumulated depreciation - equipment 292,000

Inventory 239,800

Rent payable (short-term) 45,000

Income taxes payable 98,362

Rent payable (long-term) 480,000

Common stock, $1 par value 200,000

Preferred stock, $10 par value 150,000

Prepaid expenses 87,920

Equipment 1,470,000

Equity investments (trading) 121,000

Accumulated depreciation - buildings 270,200

Buildings 1,640,000

INSTRUCTIONS:

Prepare a balance sheet in good form. Common stock authorized was 400,000 shares, 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 equity investments (trading) are the same.