Montoya, Inc and AERO INC_ Financial statements

Presented below are a number of balance sheet items for Montoya, Inc., for the current year, 2012.

Goodwill	$127,620	Accumulated depreciationâ€”equipment	$292,465
Payroll Taxes Payable	180,211	Inventory	242,420
Bonds payable	302,620	Rent payable (short-term)	47,620
Discount on bonds payable	15,465	Income tax payable	100,982
Cash	362,620	Rent payable (long-term)	482,620
Land	482,620	Common stock, $1 par value	202,620
Notes receivable	448,320	Preferred stock, $10 par value	152,620
Notes payable (to banks)	267,620	Prepaid expenses	90,540
Accounts payable	492,620	Equipment	1,472,620
Retained earnings	?	Equity investments (trading)	123,620
Income taxes receivable	100,250	Accumulated depreciationâ€”buildings	270,665
Unsecured notes payable (long-term)	1,602,620	Buildings	1,642,620

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.

====================================================================

Aero Inc. had the following balance sheet at December 31, 2011.

AERO INC. BALANCE SHEET DECEMBER 31, 2011
Cash	$ 23,570	Accounts payable	$ 33,570
Accounts receivable	24,770	Bonds payable	44,570
Investments	32,000	Common stock	103,570
Plant assets (net)	84,570	Retained earnings	26,770
Land	43,570		$208,480
	$208,480

During 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.

Solution

This question has been answered.