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Presented below are a number of balance sheet items for Montoya, Inc., for the c

ID: 2565448 • Letter: P

Question

Presented below are a number of balance sheet items for Montoya, Inc., for the current year, 2017. Goodwill $124,700 Accumulated depreciation-equipment $292,000 Payroll taxes payable 177,591 Inventory 239,800 Bonds payable 300,000 Rent payable (short-term) 45,000 Discount on bonds payable 15,000 Income taxes payable 98,362 Cash 365,000 Rent payable (long-term) 480,000 Land 483,000 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 ? Debt investments (trading) 121,000 Income taxes receivable 97,630 Accumulated depreciation—buildings 270,200 Notes payable (long-term) 1,660,000 Building 1,640,000 Instructions Prepare a classified balance sheet in good form. Common stock authorized was 400,000 shares, and preferred stock authorized was 20,000 shares. Assume that notes receivable and notes payable are short-term, unless stated otherwise. Cost and fair value of debt investments (trading) are the same. Presented below are a number of balance sheet items for Montoya, Inc., for the current year, 2017. Goodwill $124,700 Accumulated depreciation-equipment $292,000 Payroll taxes payable 177,591 Inventory 239,800 Bonds payable 300,000 Rent payable (short-term) 45,000 Discount on bonds payable 15,000 Income taxes payable 98,362 Cash 365,000 Rent payable (long-term) 480,000 Land 483,000 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 ? Debt investments (trading) 121,000 Income taxes receivable 97,630 Accumulated depreciation—buildings 270,200 Notes payable (long-term) 1,660,000 Building 1,640,000 Instructions Prepare a classified balance sheet in good form. Common stock authorized was 400,000 shares, and preferred stock authorized was 20,000 shares. Assume that notes receivable and notes payable are short-term, unless stated otherwise. Cost and fair value of debt investments (trading) are the same.

Explanation / Answer

Montoya, Inc. Balance Sheet 31-Dec-17 Assets Amount (in $) Current Assets Cash              365,000 Debt Investments (classified as Trading)              121,000 Notes Receivable              445,700 Income Taxes Receivable                97,630 Inventory              239,800 Prepaid Expenses                87,920 Total Current Assets (A)          1,357,050 Non-current Assets Property, Plant and Equipment Land              483,000 Equipment          1,470,000 less: Accumulated Depreciation on Equipments           (292,000)          1,178,000 Building          1,640,000 less: Accumulated Depreciation on Building           (270,200)          1,369,800 Intangible Assets Goodwill              124,700 Total Non-current Assets (B)          3,155,500 Total Assets (A+B)          4,512,550 Liabilities and Shareholder's Equity Current Liabilities Payroll Taxes Payable              177,591 Rent Payable (Short-Term)                45,000 Notes Payable (to Banks)              265,000 Income Tax Payable                98,362 Accounts Payable              490,000 Total Current Liabilities (C)          1,075,953 Non-current Liabilities Notes Payable (Long-Tem)          1,660,000 Bonds Payable              300,000 less: Discount on Bonds Payable              (15,000)              285,000 Rent Payable (Long-term)              480,000 Total Non-Current Liabilities (D)          2,425,000 Shareholder's Equity Common Stock at $1 par value Authorised 400,000 Issued 200,000              200,000 Preferred Stock at $10 par value Authorised 20,000 Issued 15,000              150,000 Retained Earnings (Note-1)              661,597 Total Shareholder's Equity (E)          1,011,597 Total Liabilities and Shareholder's Equity (C+D+E)          4,512,550 Note-1 Calculation of Retained Earnings Total Assets (A+B)          4,512,550 Total Liabilities (C+D)          3,500,953 Shareholder's Equity              350,000 Retained Earnings              661,597

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