Question 1

Statement of financial position items for Cavalier Inc. follow for the current year, 2017:

Goodwill		$112,500		Accumulated depreciationequipment		$262,800
Payroll taxes payable		159,832		Inventory		215,820
Bonds payable due 2021		256,500		Rent payable		40,500
Discount on bonds payable		13,500		Income tax payable		88,526
Cash		324,000		Rent payable (long-term)		432,000
Land		432,000		Common shares (20,000 shares issued)		180,000
Notes receivable		401,130		Preferred shares (15,000 shares issued)		135,000
Notes payable		238,500		Prepaid expenses		79,128
Accounts payable		441,000		Equipment		1,323,000
Retained earnings		?		Fair value-NI investments		108,900
Income taxes receivable		87,867		Accumulated depreciationbuildings		243,180
Notes payable (due in five years)		1,440,000		Buildings		1,476,000

(a) Prepare a classified statement of financial position in good form. The numbers of authorized shares are as follows: unlimited common and 20,000 preferred. Assume that income tax accounts, notes receivable, and notes payable are short-term, unless stated otherwise, and that the fair valuenet income investments are stated at fair value. (List Current Assets in order of liquidity. List Property, Plant and Equipment in order of Land, Buildings and Equipment.)

Here are the drop down menu list items:

Statement of Financial Position Assets Liabilities and Shareholders' Equity December 31, 2017 For the Month Ended December 31, 2017 For the Year Ended December 31, 2017 Total Liabilities and Shareholders' Equity Total Liabilities Total Property, Plant, and Equipment Total Current Liabilities Long-Term Liabilities Total Long-Term Liabilities Total Current Assets Total Shareholders' Equity Current Assets Property, Plant, and Equipment Total Assets Current Liabilities Shareholders Equity Capital Shares