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Montoya, Inc and AERO INC_ Financial statements




Question;Presented below are a number of balance sheet items for Montoya, Inc., for the current year, 2012.Goodwill$127,620Accumulated depreciation?equipment$292,465Payroll Taxes Payable180,211Inventory242,420Bonds payable302,620Rent payable (short-term)47,620Discount on bonds payable15,465Income tax payable100,982Cash362,620Rent payable (long-term)482,620Land482,620Common stock, $1 par value202,620Notes receivable448,320Preferred stock, $10 par value152,620Notes payable (to banks)267,620Prepaid expenses90,540Accounts payable492,620Equipment1,472,620Retained earnings?Equity investments (trading)123,620Income taxes receivable100,250Accumulated depreciation?buildings270,665Unsecured notes payable (long-term)1,602,620Buildings1,642,620Prepare a classified balance sheet in good form. Common stock authorized was 400,000 shares, and preferred stock authorized was 20,000 shares. Assume that notes receivable and notes payable are short-term, unless stated otherwise. Cost and fair value of equity investments (trading) are the same.====================================================================Aero Inc. had the following balance sheet at December 31, 2011.AERO INC.BALANCE SHEETDECEMBER 31, 2011Cash$ 23,570Accounts payable$ 33,570Accounts receivable24,770Bonds payable44,570Investments32,000Common stock103,570Plant assets (net)84,570Retained earnings26,770Land43,570$208,480$208,480During 2012, the following occurred.1.Aero liquidated its available-for-sale investment portfolio at a loss of $8,570.2.A tract of land was purchased for $41,570.3.An additional $30,000 in common stock was issued at par.4.Dividends totaling $13,570 were declared and paid to stockholders.5.Net income for 2012 was $38,570, including $15,570 in depreciation expense.6.Land was purchased through the issuance of $33,570 in additional bonds.7.At December 31, 2012, Cash was $73,770, Accounts Receivable was $45,570, and Accounts Payable was $43,570.


Paper#37300 | Written in 18-Jul-2015

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