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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.


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.