Question

The following are the ending balances of accounts at December 31, 2021. for the Valley Pump Corporation 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 Debits Credits 44,000 94,000 119,000 $ 29,000 82,000 158,000 395,000 119,000 113,000 44,000 31,000 51,000 84,000 39,000 345,000 6,000 390,000 31,000 $1,087,000 $1,087,000 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 Required: Dumn Connntinn inanmhor an anne inn

Answer 1

VALLEY PUMP CORPORATION BALANCE SHEET At December, 2021 Assets Current Assets: Cash Accounts Receivable (net) Inventories Marketable securities Prepaid expenses Total current assets $ 44,000 $ 88,000 $ 119,000 $ 41,000 & 51,ooo $343,000 Investments : Mariketable Securities $ 41,000 $ 39,000 Land $ 80,000 Total investments Property, plant and equipment: Land Buildings Equipment $ 119,000 $ 395,000 $ 13,000 $ 627,000 $ 163,000 $ 464,000 Less: Accumulated Deprec'ation Ne property, plant and equipment Intangible assets: Copyright Total assets $ 31,000 $ 918,000

Liabilities and Shareholders equity Current liabilities : R Accounts Payable $ 84,000 Deferred revenues $ 39,00D Notes Payable $ 138,000 interest Payable & 29,000 Current matwe'ties of long term debt $ 69,000 Total current liabilities $ 359,000 Long term liabilities Note Payable $ 138,000 Shareholders equity: Common stock $ 390,000 Retained earnings & 31,000 Potal shareholders' equity $ 421,000 Total abilities and shareholders equity $ 918,000 Calculation: Accounts Receivable, net = Accounts Receivable - Allowance for uncollectible Account = $94,000 - $ 6,000 = $ 88,000 Marketable Securities = $82,0 = $ 41,000 Accumulated depreciation - Building depreciation + Equipment Depreciation $ 44,000 $ 119,000 + $ 163,000