Presented below are a number of balance sheet items for Montoya, Inc. for 2014. Goodwill $127,970
Accumulated Depreciation-Equipment $292,260
Payroll Taxes Payable 180,561
Inventory 242,770
Bonds payable 302,970
Rent payable (short-term) 47,970
Discount on bonds payable 15,260
Income taxes payable 101,332
Cash 362,970
Rent payable (long-term) 482,970
Land 482,970
Common stock, $1 par value 202,970
Notes receivable 448,670
Preferred stock, $10 par value 152,970
Notes payable (to banks) 267,970
Prepaid expenses 90,890
Accounts payable 492,970
Equipment 1,472,970
Retained earnings ?

Required:
Prepare a 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.

Montoya, Inc.

Balance Sheet

As of December 31, 2014:

Assets:

Current Assets:

Cash                                 $362,970  

Notes receivable                448,670

Inventory                            242,770

Prepaid expenses               90,890

Total current Assets                            $1,145,300

Equipment      1,472,970

Accumulated

Depreciation  292,260     1,180,710

Land                                   482,970

Goodwill                             127,970  

Total long-term assets                       $1,791,650

Total assets                                      $2,936,950

Liabilities + Equity:

Current Liabilities:

Accounts payable               492,970

Payroll Taxes Payable         180,561

Income taxes payable         101,332

Rent payable (short-term)    47,970

Discount on bonds payable 15,260

Notes payable (to banks)  267,970

Total current liabilities                      $1,106,063

Rent payable (long-term)  482,970

Bonds payable                  302,970

Total long-term liabilities                  $785,940

Total liabilities                                $1,892,003

EQUITY:

Common stock, 400,000 authorized, $1 par value

202,970 issued               202,970

Preferred stock, 200,000 authorized, $10 par value

15,297 issued                   152,970

Retained earnings          689,007

Total Equity                                   $1,044,947

Total liabilities and equity          $2,936,950

Explanation:

a) Data and Calculations:

Cash                                 $362,970  

Notes receivable                448,670

Inventory                            242,770

Prepaid expenses               90,890

Equipment                       1,472,970

Land                                   482,970

Goodwill                             127,970  

Accumulated Depreciation-Equipment    $292,260

Accounts payable                                        492,970

Payroll Taxes Payable                                   180,561

Income taxes payable                                   101,332

Rent payable (short-term)                             47,970

Discount on bonds payable                          15,260

Notes payable (to banks)                            267,970

Rent payable (long-term)                            482,970

Bonds payable                                            302,970

Common stock, $1 par value                     202,970

Preferred stock, $10 par value                   152,970

Retained earnings                                     689,007

Total                            $3,229,210       $3,229,210

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answer; is usually (less than) the socially optimal level of consumption;