Question

The following is the ending balances of accounts at December 31, 2021, for the VElectronics Corporation.

Account Title	Debits			Credits
Cash		81,000
Short-term investments		196,000
Accounts receivable		137,000
Long-term investments		42,000
Inventory		222,000
Receivables from employees		47,000
Prepaid expenses (for 2022)		23,000
Land		287,000
Building		1,620,000
Equipment		644,000
Patent (net)		159,000
Franchise (net)		47,000
Notes receivable		285,000
Interest receivable		19,000
Accumulated depreciation—building				627,000
Accumulated depreciation—equipment				217,000
Accounts payable				196,000
Dividends payable (payable on 1/16/2022)				17,000
Interest payable				23,000
Income Taxes payable				47,000
Deferred revenue				67,000
Notes payable				314,000
Allowance for uncollectible accounts				15,000
Common stock				2,028,000
Retained earnings				258,000
Totals		3,809,000		3,809,000

Additional information:

1. The common stock represents 1.1 million shares of no par stock authorized, 570,000 shares issued and outstanding.
2. The receivables from employees are due on June 30, 2022.
3. The notes receivable are due in installments of $57,000, payable on each September 30. Interest is payable annually.
4. Short-term investments consist of securities that the company plans to sell in 2022 and $57,000 in treasury bills purchased on December 15 of the current year that mature on February 15, 2022. Long-term investments consist of securities that the company does not plan to sell in the next year.
5. Deferred revenue represents payments from customer for extended service contracts. Seventy five percent of these contracts expire in 2022, the remainder in 2023.
6. Notes payable consists of two notes, one for $107,000 due on January 15, 2023, and another for $207,000 due on June 30, 2024.

Required:
Prepare a classified balance sheet for VElectronics at December 31, 2021. (Amounts to be deducted should be indicated by a minus sign.)

Using the following accounts:

Accounts payable Accounts receivable Accrued liabilities Additional paid-in capital

Answer 1

Answer:

VElectronics Corporation
Balance Sheet
December 31,2021
Assets
Current Assets:
Cash	81,000
Short-term investments	196,000
Inventory	222,000
Accounts receivable	137,000
Allowance for uncollectible accounts	-15,000
Receivables from employees	47,000
Notes receivable	57,000
Interest receivable	19,000
Prepaid expenses (for 2022)	23,000
Total current assets		767,000
Investments:
Long-term investments	42,000
Notes receivable [285,000-57,000]	228,000
Total investments		270,000
Property,plant,and equipment:
Land	287,000
Building	1,620,000
Accumulated depreciation—building	-627,000
Equipment	644,000
Accumulated depreciation—equipment	-217,000
Total property,plant, and equipment		1,707,000
Intangible assets:
Patent (net)	159,000
Franchise (net)	47,000
Total intangible assets		206,000
Total Assets		2,950,000
Liabilities and stockholders' Equity
Current liabilities:
Accounts payable	196,000
Dividends payable (payable on 1/16/2022)	17,000
Interest payable	23,000
Income Taxes payable	47,000
Deferred revenue [67,000 x 75%]	50,250
Total current liabilities		333,250
Long-term debt:
Notes payable	314,000
Deferred revenue [67,000 x 25%]	16,750
Total long-term debt		330,750
Total liabilities		664,000
Stockholders' equity:
Common stock	2,028,000
Retained earnings	258,000
Total stockholders' equity		2,286,000
Total liabilities and stockholders' Equity		2,950,000