Question

The following are the ending balances of accounts at December 31, 2021, for the Valley Pump Corporation. Credits $ Debits 43,000 92,000 117,000 $ 28,000 80,000 156,000 390,000 118,000 111,000 Account Title Cash Accounts receivable Inventory Interest payable Investment in equity securities Land Buildings Accumulated 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 Common stock Retained earnings Totals 43,000 30,000 50,000 83,000 38,000 340,000 5,000 380,000 34,000 $1,069,000 $1,069,000

Answer 1

*Intentional of selling in next year,so classified as current Investments $ 3,37,000 this is held as investments,so classifed as some portion of land to investments $ 78,000 Balance Sheet Assets Current Assets: Cash $ 43,000 Accounts Receivable $ 92,000 Inventory $ 1.17,000 Investment in Equity Securities $ 40,000 Prepaid expenses $ 50,000 Allowance for uncollectiable accounts $ -5.000 Total Current Assets Investments: Investment in Equity Securities $ 40,000 Land $ 38.000 Total Investments Property,Plant& Equipment: Land $ 1.18.000 Buildings $ 3,90,000 Equipment $ 1,11,000 Less:Accmulated Depreciation - Building $ -1.18.000 Less:Accmulated Depreciation - Equipment $ 43,000 Net Property.Plant & equipment Intangible Assets: Copy Rights Total Assets Liabilities & Shareholder's Equity Current Liabilities: Interest payable $ 28.000 Accounts Payable $ 83,000 Notes payable $ 1.36.000 Deferred Revenue $ 38.000 Total Current Liabilities $ 2.85.000 Long term liabilities: Notes payable $ 2.04.000 Total Liabilities Shareholder's Equity: Common stock $ 3,80,000 Retained Earnings $ 34,000 Total Share holder's Equity Total Liabilities & Stockholder's Equity $ 4,58,000 $ 30,000 $ 9,03,000 *this is due in six months, so it should be as current liabilities this is due in more than one year, hence classified to long term liabilities $ 4,89,000 $ 4,14,000 $ 9,03,000