Please see attachment for more detail of problem 5-2

Problem 5-2

Presented below are a number of balance sheet items for Sage, Inc., for the current year, 2017.

Goodwill$126,320Accumulated Depreciation-Equipment$292,490Payroll Taxes Payable178,911Inventory241,120Bonds payable301,320Rent payable (short-term)46,320Discount on bonds payable15,490Income taxes payable99,682Cash361,320Rent payable (long-term)481,320Land481,320Common stock, $1 par value201,320Notes receivable447,020Preferred stock, $10 par value151,320Notes payable (to banks)266,320Prepaid expenses89,240Accounts payable491,320Equipment1,471,320Retained earnings?Debt investments (trading)122,320Income taxes receivable98,950Accumulated Depreciation-Buildings270,690Notes payable (long-term)1,601,320Buildings1,641,320

Prepare

Problem 5-2 Presented below are a number of balance sheet items for Sage, Inc., for the current year, 2017. Goodwill $ 126,320 Accumulated Depreciation-Equipment $ 292,490 Payroll Taxes Payable 178,911 Inventory Bonds payable 301,320 Rent payable (short-term) 46,320 Income taxes payable 99,682 Discount on bonds payable 15,490 241,120 Cash 361,320 Rent payable (long-term) 481,320 Land 481,320 Common stock, $1 par value 201,320 Notes receivable 447,020 Preferred stock, $10 par value 151,320 Notes payable (to banks) 266,320 Prepaid expenses Accounts payable 491,320 Equipment Retained earnings ? Income taxes receivable Notes payable (long-term) 98,950 1,601,320 Debt investments (trading) Accumulated Depreciation-Buildings Buildings 89,240 1,471,320 122,320 270,690 1,641,320 Prepare 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 debt investments (trading) are the same. (List Current Assets in the order of liquidity. List Property, Plant and Equipment in order of Land, Building and Equipment.)