I. BALANCE SHEET

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. Develop a balance sheet using Microsoft excel and the information below compiled by Rhonda on February 15, 2016.

Corn on hand 4200 bu. @ $4.40 per bu.

Hay on hand 75 tons @ $50.00 per ton

Growing wheat 280 acres @ $22.50 per acre

Farm mortgage (annual payment due 4/01/16) $14,000 principal

$20,000 accrued interest

balance after 4/01/16 payment $308,000

Buildings & improvements $48,000

Note payable on feeder cattle (all due 11/15/16) $34,000

Calves (to be sold in May 2016) 98 head @ $275 per head

Feeder cattle (to be sold in 60 days) 138 head @ $575 per head

Note payable at bank (all due 3/1/17) $52,000

Vehicles $15,500

Other machinery & equipment $80,500

Loan on beef cows (annual payment due 10/01/16) $9,000 principal,

$3,900 accrued interest

balance after 10/1/16 payment $38,000

Land (present market value) 620,000 200 acres @ $3100 per acre

Beef breeding cows 68,900 106 head @ $650 per head

Bulls 4,000 4 head @ $1,000 each

Checking account balance $5,400

Account payable at Joe's Feed & Seed $4,200

Account receivable $1,600

Shop Equip. (welder, lathe, drill press, etc.) $2,000

Ford Motor Co. stock 200 shares @ $65 per share

Other Information

1) Has paid in advance for $6,000 worth of feed in order to get a good price on it. The feed will be delivered in May, 2016.

2) Income and social security taxes on 2015 income is estimated at $7,200.

3) Rhonda contributed $50,000 to get her business started.

4) Retained earnings since the beginning of the business equals $305,000.