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 depreciation—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 depreciation—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.

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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 aIDitional $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 aIDitional bonds.
7. At December 31, 2012, Cash was $73,770, Accounts Receivable was $45,570, and Accounts Payable was $43,570.

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