Answer:
MONTOYA, INC.
Balance Sheet
December 31, 2017
Assets
Current assets
Cash $360,000
Equity Investments (Trading) 121,000
Notes Receivable 445,700
Income Taxes Receivable 97,630
Inventory 239,800
Prepaid Expenses 87,920
Total current assets $1,352,050
Property, plant, and equipment
Land 480,000
Buildings $1,640,000
Less: Accum Deprec - Buildings 270,200 1,369,800
Equipment 1,470,000
Less: Accum Deprec - Equipment292,000 1,178,000
3,027,800
Intangible assets
Goodwill 125,000
Total assets $4,504,850
Liabilities and Shareholders’ Equity
Current liabilities
Accounts Payable $490,000
Notes Payable to Banks 265,000
Payroll Taxes Payable 177,591
Income Tax Payable 98,362
Rent Payable - Short-term 45,000
Total current liabilities $1,075,953
Long-term liabilities
Unsecured Notes Payable (Long-term) 1,600,000
Bonds Payable $300,000
Less: Discount on Bonds Payable 15,000 285,000
Rental Payable Long-term 480,000 2,365,000
Total liabilities 3,440,953
Shareholders’ equity
Capital Stock
Preferred stock, $10 par; 20,000 shares authorized, 15,000 shares issued 150,000
Common stock, $1 par; 400,000 shares authorized, 200,000 issued 200,000 350,000
Retained Earnings ($1,063,897 - $350,000) 713,897
Total shareholders’ equity ($4,504,850 – $3,440,953) 1,063,897
Total liabilities and shareholders’ equity $4,504,850
Computation of Retained earnings:
Accounting Equation
Total assets $4,504,850
Less: Liabilities 3,440,953
Less: Contributed capital 350,000
Retained earnings $713,897
