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3 years ago

Presented below are a number of balance sheet items for Montoya, Inc. for the current year, 2020.

Business

1 answer:

Helga [31]3 years ago

5 0

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

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Answer:

The correct answer would be, It appears that his policy is Compliance Based Ethics Codes.

Explanation:

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4 years ago

In year 1, Stone, a cash basis taxpayer, incorporated her CPA practice. No liabilities were transferred. The following assets we

Tanzania [10]

Answer:

a. $30,500

Explanation:

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= Cash basis of checking account + adjusted basis of computer equipment

= $500 + $30,000

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4 years ago

Assume that ExxonMobil uses a standard cost system for each of its refineries. For the Houston refinery, the monthly fixed overh

maksim [4K]

Answer:

a. Fixed overhead budget variance = Budgeted fixed overhead - Actual fixed overhead

= $8,000,000 - $8,750,000

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3 years ago

The balance sheet reports revenues and selling costs for a period of time.

Reika [66]

I would say false, the sheet that reports the revenues and the costs is known as the income statement. the balance sheet is the sheet that would report all of the assets (such as the cash, accounts receivable, or others). The balance sheet will also report all the liabilities (including the accounts payable, notes payable and others). Lastly, the balance sheet will also report the equity or the capital account of the business. So in a nutshell, the balance sheet reports the assets, liabilities, and owner's equity.

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4 years ago

g The Nite Lite Factory produces two products - small lamps and desk lamps. It has two separate departments - finishing and prod

almond37 [142]

Answer:

$7.20

Explanation:

Given the following :

FINISHING department :

overhead budget = $550,000

direct labor HOURS = 500,000

PRODUCTION department :

overhead budget = $400,000

direct labor hours = 80,000

Predetermined allocation rate for finishing department :

Overhead / allocation base = ($550,000 / 500,000) = $1.10 per direct labor hour

Predetermined allocation rate for production department :

Overhead / allocation base = ($400,000 / 80,000) = $5 per direct labor hour

If the budget estimates that a desk lamp will require 2 hours of finishing and 1 hour of production:

Finishing department :

(2 × Predetermined allocation rate for finishing department)

= (2 × $1.10) = $2.20

Production :

(1 × Predetermined allocation rate for production department)

= (1 × $5). = $5

Total = ($2.20 + $5) = $7.20

3 0

3 years ago