Question

please correct the balance sheet and add what is necessary

Exercise 3-5 (Algo) Balance sheet preparation (LO3-2, 3-3) The following are the ending balances of accounts at December 31, 2021, for the Valley Pump Corporation, Credits Debits $ 31,000 68,000 93,000 $ 16,000 56,000 132.000 330,000 106,000 87,000 Account Title Cash Accounts receivable Inventory Interest payable Investment in equity securities Land Buildings nccumulated depreciation-buildings Equipment Accumulated depreciation equipment Copyright (net) Prepaid expenses (next 12 months) Accounts payable Deferred revenue (next 12 months) Notes payable Allowance for uncollectible accounts Connon stock Retained earnings Totals 31,000 18,000 38,000 nces 71,000 26,000 280.000 6.000 260,000 57.000 $853,000 $853,000 Additional Information: 1. The $132,000 balance in the land account consists of $106,000 for the cost of land where the plant and office buildings are located. The remaining $26,000 represents the cost of land being held for speculation 2. The $56,000 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 $112.000 note due in six months and a $168,000 note due in three annual installments of $56,000 each, with the first payment due in August of 2022

Answer 1

[$68,000 - $6,000] [$56,000 X (1/2)] SO VALLEY PUMP CORPORATION Balance Sheet At December 31, 2021 Assets Current assets: Cash $31,000 Accounts receivable (net) $62,000 Inventory $93,000 Prepaid expenses $38,000 Investment in equity securities $28,000 Leave this row blank Leave this row blank Total current assets Investments: Land $26,000 Investment in equity securities $28,000 Leave this row blank Total investments Property, plant, and equipment: Land $106,000 Buildings $330,000 Equipment $87,000 $523,000 $252,000 [$56,000 x (1/2)] $0 $54,000

$386,000 $18,000 $0 $710,000 ($112,000 + $56,000] Less: Accumulated Depreciation-Buildings $106,000 Less: Accumulated Depreciation Equipment $31,000 Net property, plant, and equipment: Intangible assets: Copyright (net) Leave this row blank Total assets Liabilities and shareholders' equity Current liabilities: Accounts payable $71,000 Interest payable $16,000 Note payable $168,000 Deferred revenues $26,000 Leave this row blank Leave this row blank Total current liabilities Long-term liabilities: Note payable Leave this row blank Total liabilities Shareholders' equity Common stock $260,000 Retained earnings $57,000 Leave this row blank SO Total shareholders' equity Total liabilities and shareholders' equity $281,000 $112,000 ($56,000 x 2 installments] $0 $393,000 $317,000 $710,000