Reference no: EM132647565
The following are the ending balances of accounts at December 31, 2021, for the Valley Pump Corporation.
Cash $ 44,000
Accounts receivable 94,000
Inventory 119,000
Interest payable $ 29,000
Investment in equity securities 82,000
Land 158,000
Buildings 395,000
Accumulated depreciation-buildings 119,000
Equipment 113,000
Accumulated depreciation-equipment 44,000
Copyright (net) 31,000
Prepaid expenses (next 12 months) 51,000
Accounts payable 84,000
Deferred revenue (next 12 months) 39,000
Notes payable 345,000
Allowance for uncollectible accounts 6,000
Common stock 390,000
Retained earnings 31,000
Additional Information:
1.The $158,000 balance in the land account consists of $119,000 for the cost of land where the plant and office buildings are located. The remaining $39,000 represents the cost of land being held for speculation.
2.The $82,000 balance in the investment in equity securities account represents an investment in the common stock of another corporation. Valley intends to sell one-half of the stock within the next year.
3.The notes payable account consists of a $138,000 note due in six months and a $207,000 note due in three annual installments of $69,000 each, with the first payment due in August of 2022.
Question 1: Make a classified balance sheet for the Valley Pump Corporation at December 31, 2021. Use the additional information to help determine appropriate classifications and account balances. (Amounts to be deducted should be indicated by a minus sign.)