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

Goodwill $ 125,000 Accumulated depreciationequipment $ 292,000

Payroll taxes payable 177,591 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 depreciationbuildings 270,200

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

Instructions

a classified 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.