Part I. Building a Balance Sheet - Scenario-On Jan 31, 2019, Rhonda Rancher applied for a loan. Her banker, Larry Loonmaker, 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 the following information, which she plans to use to construct a balance sheet. Your task is to determine where each piece of would be listed on the balance sheet. In the blank to the right of each item, you should indicate one of the following Current Asset Non-Current Asset Current Liability Non-current Liability Owner's Equity From scraps of paper, opened but unfiled envelopes of mail, old receipts, invoices and balls, and some of her other records, Rhonda has the following information Wheat, stored on farm in a grain bin 6000 bushes of what The current market price for what is 54 50 perhe Hay stored in a born on the farm. 50 to 511000 person 2 Growing wheat, 280 acres Inote, she estimates she has spent $22.50 per acre so far in de thermoso Farm mortgage payment due 401/19 (note, this payment includes $14,000 principal $20,000 acredits Farm mortgage balance after 401/19 payment for at she still will owe $20,000 5 Bam, equipment shods, fencing and other property improvements. 5125.000 Note payable on foeder cattle (full balance de 11/65719). 534.000 7 Calves to be sold in May 9 head 5275 per head Fooder came to be sold in 60 days, 138 head 5575 per head Farm vehicles, current book value $15.500 10 Other machinery & farm equipment, current book valu, 80,500 11 1 Loan payment on beef cows doo 10/01/19 12 Coote, this payment includes $9,000 principal $3.900 accrued interest) Loan for beef cows, balance after 10/1/19 payment, $38,000 13 Land, 1020 acres (current estimated market value $850 per acre) 14 (note, the land was originally purchased for 400 per acre) Beofbreeding cows, 50 head, estimated market value = 5650 per head 15 Bulls, 2 head a $1,000 each 16 Checking account balance, 55,400 17 Account payable at Joe's Food & Seed, 54,200 18 Account receivable from day sale to neighbor, 51,600 19 Shop Equipment (welder, lathe, drill press, etc), book value of $2,000 20. Paid in advance for $6,000 worth of feed in order to get a good price on it (note, the feed will be delivered in March 2019) Income and social security taxes on 2018 income is estimated at $7.200 22 Rhonda contributed 550,000 to get her business started 23. Estimated deferred tax on income, assuming a tax rate of 25% 24 Estimated deferred tax on capital gains on farmland, assuming a tax rate of 15% 25
