Question

The following is the ending balances of accounts at December 31, 2018 for the Valley Pump Corporation Account Title Cash Accounts receivable Inventories Interest payable Marketable securities Land Buildings Accumulated depreciation-buildings Equipment Accumulated depreciation-equipment Copyright (net of amortization) Prepaid expenses (next 12 months) Accounts payable Deferred revenues (next 12 months) Notes payable Allowance for uncollectible accounts Common stock Retained earnings Totals Debits Credits 45,000 96,000 121,000 30,000 84,000 160,000 400,000 120,000 115,000 45,000 32,000 52,000 85,000 40,000 350,000 7,000 400,000 28,000 1,105,000 1,105,0060 Additional information: 1. The $160,000 balance in the land account consists of $120,000 for the cost of land where the plant and office buildings are located. 2. The $84,000 in the marketable securities account represents an investment in the common stock of another corporation. Valley 3. The notes payable account consists of a $140,000 note due in six months and a $210,000 note due in three annual installments of The remaining $40,000 represents the cost of land being held for speculation. intends to sell one-half of the stock within the next year $70,000 each, with the first payment due in August of 2019

Answer 1

Valley Pump Corporation
Classified balance sheet
As of December 31, 2018
Assets
Current assets
Cash	45000
Accounts Receivable (net)	89000			96000-7000
Inventories	121000
Prepaid expenses	52000
Marketable securities	42000			84000/2
Total Current assets		349000
Investments
Marketable securities	42000
Land	40000
Total Investments		82000
Property, Plant and Equipment
Land	120000
Building	400000
Equipment	115000
Less: Accumulated Depreciation	($165,000)
Total Property, Plant and Equipment		470000
Intangible assets
Copyright		32000
Total Assets		933000
Liabilities
Current Liabilities
Interest payable	30000
Accounts Payable	85000
Note payable	$210,000
Deferred Revenues	40000
Total Current Liabilities		365000
Non-Current liabilities
Note payable		$140,000
Stockholders' equity
Common stock	400000
Retained earnings	28000
Total Stockholders' equity		428000
Total Liabilities and stockholders' equity		$933,000