Use the following information to create a balance sheet. The business and personal assets are kept separate. The information below relates only to the business. All the information is on a cost basis. (note: I would set up a balance sheet with places for current and non-current assets and liabilities and owner equity. I would then put all the information below in the appropriate sections. Then complete the Asset side of the balance sheet. Finally complete the Liability and owner equity side.)
Prepaid expenses 3,000
Accounts payable 5,000
Investment in growing crops 20,000
Land 510,000
Notes payable (due within 12 months) 56,000
Current portion term debt (this includes what will be paid next year on all non-current debt) 8,000
Mortgages (doesn’t include portion to be paid in the next 12 months) 243,000
Accrued interest 21,000
Notes (due beyond 12 months) 128,000
Income tax payable ?
Machinery and Equipment 190,000
Accounts Receivable 27,000
Cash 23,000
Buildings 140,000
Supplies ?
Total current assets 163,000
Deferred tax on current assets 34,000
Owner Equity 499,000

Supplies = $110,000

Income tax payable = $29,000

Explanation:

A balance sheet refers to a financial statement that presents the assets, liabilities and owner equity of a company.

For this question, the balance sheet can be prepared as follows:

Company XYZ

Balance Sheet

For the year ended ...

Particulars                                                       $                       $      

Intangible Asset

Investment in growing crops                                             20,000

Tangible Assets

Land                                                             510,000

Buildings                                                      140,000

Machinery and Equipment                        190,000

Total tangible assets                                                         840,000

Current Assets

Cash                                                              23,000

Supplies (w.1)                                                110,000

Accounts Receivable                                   27,000

Prepaid expenses                                         3,000  

Total current assets                                                            163,000  

Total Assets                                                                      1,023,000  

Owner Equity                                                                       499,000

Long-term Liabilities

Mortgages                                                   243,000

Notes (due beyond 12 months)                   128,000

Total Long term liabilities                                                    371,000

Current liabilities                  

Accounts payable                                           5,000

Notes payable (due within 12 months)        56,000

Current portion term debt                              8,000

Accrued interest                                            21,000

Deferred tax on current assets                    34,000

Income tax payable (w.2)                             29,000  

Total current liabilities                                                         153,000  

Total Owner equity and liabilities                                  1,023,000  

Workings:

w.1: Supplies = Total current assets - Cash - Accounts Receivable - Prepaid expenses = $163,000 - $23,000 - $27,000 - $3,000 = $110,000

w.2: Income tax payable = Total assets - Owner equity - Total Long term liabilities - Accounts payable - Notes payable (due within 12 months) - Current portion term debt  - Accrued interest  - Deferred tax on current assets = $1.023,000 - $499,000 - $371,000 - $5,000 - $56,000 - $8,000 - $21,000 - $34,000 = $29,000