Listed below in random order are the items to be included in the balance sheet of Rocky Mountain Lodge at December 31, 2015:

Instructions

a. Prepare a balance sheet at December 31, 2015. Include a proper heading and organize your balance sheet similar to Exhibit 2–9 . 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 2017. Does this balance sheet indicate that the company is in a strong financial position as of December 31, 2015? Explain briefly.

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