Part II: Practice Problem-Balance Sheet Preparation Using the information below for Lisa's Riding Academy,(1) prepare a Balance Sheet at 12-31-14 using good form. SHOW ALL WORK BELOW! Note: Lisa's has been in existence for two years. Cash Expenses Land Accounts Payable Supplies or Building (net) $25,000 7,000 25,000 20,000 3,000 40,000 Horses Mortgage Payable (long-term) Machinery and Accounts Recelvable Revenue Capital Stock Retained Earnings (12-31-14) $30,000 35,000 Equipment (net) 12,000 1,000 9,000 30,000 Lisa's Riding Academy Balance Sheet December 31, 2014 Current Assets: Current Liabilities: Long-Term Liabilities: Total Current Assets: $ Long-Term Assets: Stockholders' Equity: Total Stockholders' Equity: Total Liabilities and Stockholders' Equity Total Long-Term Assets: $ $ Total Assets:$ 2. True or False: The dollar amount for the Land account means the Land is worth $25,000. If false, explain your reason(s). 3. Does Retained Earnings generally equal Cash? Why or why not? 4. Which accounts did you not use? Why? Chapter Two 18