P5-2 (Balance Sheet Preparation) for the current year, 2014. Presented below are a number of balance sheet items for Montoya, Inc.,

Goodwill 125,000 accumulated depreciation-equipment 292,000

Payroll taxes available 177,000 inventory 239,800

Bonds payable 300,000 rent payable(short term) 45,000

Discount on bonds payable 15,000 income taxes payable 98,362

Cash 360,000 rent payable (long-term) 480,000

Land 480,000 common stock,$1 par value 200,000

Notes receivable 445,700 preferred stock, $10 par value 150,000

Notes payable(to banks) 265,000 prepaid expenses 87,920

Accounts payable 490,000 equipment 1,470,000

Retained earnings ? equity investments (trading) 121,000

Income taxes receivable 97,630 accumulated depreciation-buildings 270,200

Notes payable (long-term) 1,600,000 buildings 1,640,000

Instruction

Prepare a classified balance sheet in good form. Common stock authorized was 400,000 shares, and pre- ferred 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.