Question from Intermediate Accounting 15th Edition by Kieso, Weygandt, Warfield

Chapter 5, Question 5-2 (page 267)

(Balance Sheet Preparation) Presented below are a number of balance sheet items for Montoya, Inc. for the current year, 2014.

Goodwill	$125,000	Accumulated depreciation equipment	$292,000
Payroll taxes	$177,591	Inventory	$239,800
Bonds payable	$300,000	Rent payable (short-term)	$45,000
Discount on bonds payable	$15,000	Income tax payable	$98,362
Cash	$360,000	Rent payable (long term)	$480,000
Land	$480,000	Common stock, $1 par value	$200,000
Notes receivable	$445,700	Preferred stock, $10 par value	$150,000
Notes payable (to banks)	$265,000	Prepaid expenses	$87,920
Accounts payable	$490,000	Equipment	$1,470,000
Retained earnings	?	Equity investments (trading)	$121,000
Income taxes receivable	$97,630	Accumulated depreciation- buildings	$270,200
Notes payable (long-term)	$1,600,000	Buildings	$1,640,000

Instructions:

Prepare a classified balance sheet in good form. Common stock authorized was 400,000 shares; preferred stock authorized was 20,000 shares. Assume that notes receivable and payable are short-term, unless stated otherwise. Cost and fair value of equity investments (trading) are the same.