Montoya, Inc.
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 taxes payable 98,362
Cash 360,000 Rent payable (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
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 equity investments (trading) are the same.