Rhonda Rancher has applied for a loan. Her banker, Larry Loanmaker, says the old balance sheet on file must be brought up to date before a loan will be considered. Rhonda spends the rest of the aftermoon taking inventory and gathering other information. In a new spreadsheet file, create a current Market Basis balance sheet for Rhonda dated February 1, 2020. Do not use any pre made templates. I want you to create the balance sheet from scratch. Use the current and non-current classifications of assets and liabilities. (60 points) Milo on hand 4200 cwt. @ $4.40 per cwt. 75 tons @ S110.00 per ton Hay on hand Growing wheat Farm mortgage principal (due 4/01) 280 acres @ $22.50 per acre $14,000 principal $20,000 accrued interest balance after 4/01 payment $208,000 Buildings & improvements Note payable on feeder cattle (all due 11/15) Calves (to be sold in May) Feeder cattle (to be sold in 60 days) $48,000 $34,000 98 head @ $275 per head 138 head @ $575 per head Note payable at bank (all due 3/1) Vehicles $52,000 S15,500 Other machinery & equipment Loan on beef cows (due 10/01) S80,500 $9,000 principal, $3,900 accrued interest balance after 10/1 payment $38,000 Land (present market value) Beef breeding cows 1020 acres @ S560 per acre 106 head @ S650 per head 4 head @ $1,000 each Bulls Checking account balance Account payable at Joe's Feed & Seed Account receivable $5,400 $4,200 $1,600 Checking account balance Account payable at Joe's Feed & Seed $5,400 $4,200 Account receivable S1,600 Shop Equip. (welder, lathe, drill press, etc.) Ford Motor Co. stock $2,000 200 shares @ S65 per share Other Information 1) Has paid in advance for $6,000 worth of feed in order to get a good price on it. The feed will be delivered in May. 2) Rhonda contributed $50,000 to get her business started. 3) Retained eamings since the beginning of the business equals $305,000. What is Owner Equity and how is it calculated using the basic accounting equation. There are two components of equity on a cost basis balance sheet and three components of equity on a market basis balance sheet. Explain what each of the components are. Why is the extra component of equity on the market basis balance sheet not found on the cost basis balance sheet? (20 points) Question 3 Assets can be valued using either a cost-based valuation system or a market-based valuation system. For each asset listed, place a "C" in the blank under the most appropriate valuation method to use for that asset when using a cost system. Place an "M" in the blank under the valuation method that should be used under a market based valuation system. (20 points) Valuation Methods Farm Production Cost Less Market Value Cost Asset Depreciation Cost Tractor Hay in storage Purchased feeder cattle Raised beef breeding cows Purchased beef breeding cows Wheat crop growing in the field Land Hay barn O Focus