Problem 5-2

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

Goodwill$126,830Accumulated Depreciation-Equipment$292,290Payroll Taxes Payable179,421Inventory241,630Bonds payable301,830Rent payable (short-term)46,830Discount on bonds payable15,290Income taxes payable100,192Cash361,830Rent payable (long-term)481,830Land481,830Common stock, $1 par value201,830Notes receivable447,530Preferred stock, $10 par value151,830Notes payable (to banks)266,830Prepaid expenses89,750Accounts payable491,830Equipment1,471,830Retained earnings?Equity investments (trading)122,830Income taxes receivable99,460Accumulated Depreciation-Buildings270,490Notes payable (long-term)1,601,830Buildings1,641,830

Prepare a classified balance sheet in good form. Common stock authorized was400,000shares, and preferred stock authorized was20,000shares. Assume that notes receivable and notes payable are short-term, unless stated otherwise. Cost and fair value of equity investments (trading) are the same.(List Current Assets in order of liquidity. List Property, Plant and Equipment in order of Land, Building and Equipment.)

MARTINEZ, INC.

Balance Sheet

December 31, 2017

For the Year Ended December 31, 2017

For the Quarter Ended December 31, 2017

Assets

$

Liabilities and Stockholders' Equity

$