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    Juarez Mountain Lodge: Prepare a Balance Sheet, compute Retained Earnings

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    16. Listed below in random order are the items to be included in the balance sheet of Juarez Mountain Lodge at December 31, 2002:

    Equipment $39,200 Buildings $450,000
    Land 425,000 Capital Stock 135,000
    Accounts Payable 54,800 Cash 21,400
    Accounts Receivable 10,600 Furnishings 58,700
    Salaries Payable 33,500 Snowmobiles 15,400
    Interest Payable 12,000 Notes Payable 620,000
    Retained Earnings ??

    a. Prepare a balance sheet at December 31, 2002. Include a proper heading. (After buildings, you may list the remaining assets in any order.

    You will need to compute the amount to be shown for retained earnings.

    b. Assume that no payment is due on the notes payable until 2004. Does this balance sheet indicate that the company is in a strong financial position as of December 31, 2002? Explain briefly.

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    16. Listed below in random order are the items to be included in the balance sheet of Juarez Mountain Lodge at December 31, 2002:

    Equipment $39,200 Buildings $450,000
    Land 425,000 Capital Stock 135,000
    Accounts Payable 54,800 Cash 21,400
    Accounts Receivable 10,600 Furnishings 58,700
    Salaries Payable 33,500 Snowmobiles 15,400
    Interest Payable 12,000 Notes Payable 620,000
    Retained Earnings ??
    Instructions
    a. Prepare a balance sheet at December 31, 2002. Include a proper heading. (After buildings, you may list the ...

    Solution Summary

    The solution organizes the accounts in proper classification, computes retained earnings and provides narrative explanations.

    $2.19

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