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P5-2 Balance Sheet for Montoya Inc

P5-2 (Balance Sheet Presentation) 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 Payable 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 Rental Expense 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
Unsecured Notes Payable (Long-term) 1,600,000 Buildings 1,640,000

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 marketable securities are the same.

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Solution Summary

Your tutorial is attached with each account placed in the classified balance sheet in the appropriate spot and equity including the needed details.