Problem 5-2

3 P5-2 (Balance Sheet Preparation) Presented below are a number of balance sheet items for Montoya, In.c. for the current year, 2014. Goodwill Payroll taxes payable Bonds payable $ 125,000 Accumulated depreciation-equipment 177,591 Inventory 00,000 Rent payable (short-term) 292,000 239,800 45,000 Discount on bonds payable Cash Land Notes receivable Notes payable (to banks) Accounts payable Retained earnings Income taxes receivable Notes payable (flong-term) 15,000 Income taxes payable 360,000Rent payable (long-term) 480,000 Common stock, $1 par value 445,700 Preferred stock, $10 par value 265,000 Prepaid expenses 490,000 Equipment 98,362 480,000 200,000 150,000 87.920 1,470,000 121,000 270.200 1,640,000 ? Equity investments (trading) 97,630 Accumulated depreciation-buildings .600,000 Buildings Instructions 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 ess stated otherwise. Cost and fair value of equity investments (trading) are the same R P5-3 (Balance Sheet Adjustment and Preparation) The adjusted trial balance of Eastwood Company and