Rhonda Rancher has applied for a loan. Her banker, Larry Loanmaker, says the old balance sheet
on file must be brought up to date before a loan will be considered.
Rhonda spends the rest of
the afternoon taking inventory and gathering other information.
Complete the balance sheet on
the attached pages using the information below compiled by Rhonda on February 15, 2007.
Milo on hand
4200 cwt. @ $4.40 per cwt.
Hay on hand
75 tons @ $50.00 per ton
280 acres @ $22.50 per acre
Farm mortgage (due4/01/07)
$20,000 accrued interest
balance after 4/01/07 payment
Buildings & improvements
Note payable on feeder cattle (all due 11/15/07)
Calves (to be sold in May 2007)
98 head @ $275 per head
Feeder cattle (to be sold in 60 days)
138 head @ $575 per head
Note payable at bank (all due 3/1/07)
Other machinery & equipment
Loan on beef cows (due 10/01/07)
$3,900 accrued interest
balance after 10/1/07 payment
Land (present market value)
1020 acres @ $560 per acre
Beef breeding cows
106 head @ $650 per head
4 head @ $1,000 each
Checking account balance
Account payable at Joe's Feed & Seed
Shop Equip. (welder, lathe, drill press, etc.)
Ford Motor Co. stock
200 shares @ $65 per share
Has paid in advance for $6,000 worth of feed in order to get a good price on it.
will be delivered in May, 2007.
Income and social security taxes on 2006 income (not yet paid) are estimated at $7,200.
Rhonda contributed $50,000 to get her business started.
Retained earnings since the beginning of the business equals $305,000.