The following transactions occurred for Lantana Company during its first month of operations and have been recorded in the T-accounts.

a. Received $50,000 cash from owners in exchange for common stock.

b. Purchased land for $20,000, paid $5,000 in cash and signed a 2-year note for the remainder.

c. Bought $900 of supplies on account.

d. Purchased $10,000 of equipment, paying cash.

e. Paid $500 on account for supplies purchased in transaction (c).

Required:

1. Determine the T-account balances.

2. Using the information in the transactions, prepare a classified balance sheet for Lantana Company.

(List long-term assets in alphabetical order)

1. T-account balances.

Common stock

$50,000

Land

$20,000

Cash

$34,500

Note Payable

$15,000

Supplies

$900

Trade Payable

$400

Equipment

$10,000

2. A classified balance sheet for Lantana Company

Non - Current Assets

Land $20,000

Equipment $10,000

Total Non - Current Assets $30,000

Current Assets

Supplies $900

Cash $34,500

Total Current Assets $35,400

Total Assets $65,400

Equity and Liabilities

Equity

Common stock $50,000

Total Equity $50,000

Current Liabilities

Trade Payable $400

Total Current Liabilities $400

Non - Current Liabilities

Note Payable $15,000

Total Non - Current Liabilities $15,000

Total Equity and Liabilities $65,400

Explanation:

T-account balances.

Common stock

$50,000

Land

$20,000

Cash

$50,000 - $5,000 - $10,000 - $500 = $34,500

Note Payable

$15,000

Supplies

$900

Trade Payable

$900 - $500 = $400

Equipment

$10,000