Listed below in random order are the items to be included in the balance sheet of Smokey Mountain Lodge at December 31, 2011:

Instructions
a. Prepare a balance sheet at December 31, 2011. Include a proper heading and organize your balance sheet similar to Exhibit 2–9. (After “Buildings,” you may list the remaining assets in any order.) You will need to compute the amount to be shown for Retained Earnings.
b. Assume that no payment is due on the notes payable until 2013. Does this balance sheet indicate that the company is in a strong financial position as of December 31, 2011? Explainbriefly.

Equipment.. . 39,200 Land Accounts Payable.. Accounts Receivable Salaries Payable. . Interest Payable Buildings. . . . 425,000 Capital Stock 54,800 10,600 33,500 12,000 Cash . . Funishings.. Snowmobiles.. Notes Payable Retained Earnings. .. . . . 135,000 31,400 58,700 15,400 620,000