homework3-2007 - BALANCE SHEET I Rhonda Rancher has applied...

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1 BALANCE SHEET I. 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 a separate page 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 Growing wheat 280 acres @ $22.50 per acre Farm mortgage (due4/01/07) $14,000 principal $20,000 accrued interest balance after 4/01/07 payment $208,000 Buildings & improvements $48,000 Note payable on feeder cattle (all due 11/15/07) $34,000 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) $52,000 Vehicles $15,500 Other machinery & equipment $80,500 Loan on beef cows (due 10/01/07) $9,000 principal, $3,900 accrued interest balance after 10/1/07 payment $38,000 Land (present market value) 1020 acres @ $560 per acre Beef breeding cows 106 head @ $650 per head Bulls 4 head @ $1,000 each Checking account balance $5,400 Account payable at Joe's Feed & Seed $4,200 Account receivable $1,600 Shop Equip. (welder, lathe, drill press, etc.) $2,000 Ford Motor Co. stock 200 shares @ $65 per share Other Information 1) Has paid in advance for $6,000 worth of feed in order to get a good price on it. The feed will be delivered in May, 2007. 2) Income and social security taxes on 2006 income (not yet paid) are estimated at $7,200.
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