PROBLEM 2.1A Preparing and Evaluating a Balance Sheet LO2-4 Listed in random order are the items to be included in the balance sheet of Rocky Mountain Lodge at December 31 , year 1. Instructions a. Prepare a balance sheet at December 31, year 1 . 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 year 3 . Does this balance sheet indicate that the company is in a strong financial position as of December 31, year 1? Explain briefly. Problem 2.1A Sample Worked Problem: Problem 2.1B