Question

The following is the ending balances of accounts at December 31, 2018 for the Vosburgh Electronics Corporation.

Account Title	Debits			Credits
Cash		75,000
Short-term investments		190,000
Accounts receivable		131,000
Long-term investments		39,000
Inventories		219,000
Loans to employees		44,000
Prepaid expenses (for 2019)		20,000
Land		284,000
Building		1,590,000
Machinery and equipment		641,000
Patent		156,000
Franchise		44,000
Note receivable		270,000
Interest receivable		16,000
Accumulated depreciation—building				624,000
Accumulated depreciation—equipment				214,000
Accounts payable				193,000
Dividends payable (payable on 1/16/19)				14,000
Interest payable				20,000
Taxes payable				44,000
Deferred revenue				64,000
Notes payable				308,000
Allowance for uncollectible accounts				12,000
Common stock				2,016,000
Retained earnings				210,000
Totals		3,719,000		3,719,000

Additional information:

1. The common stock represents 1.4 million shares of no par stock authorized, 540,000 shares issued and outstanding.
2. The loans to employees are due on June 30, 2019.
3. The note receivable is due in installments of $54,000, payable on each September 30. Interest is payable annually.
4. Short-term investments consist of marketable equity securities that the company plans to sell in 2019 and $54,000 in treasury bills purchased on December 15 of the current year that mature on February 15, 2019. Long-term investments consist of marketable equity securities that the company does not plan to sell in the next year.
5. Deferred revenue represents customer payments for extended service contracts. Seventy five percent of these contracts expire in 2019, the remainder in 2020.
6. Notes payable consists of two notes, one for $104,000 due on January 15, 2020, and another for $204,000 due on June 30, 2021.

Required:
Prepare a classified balance sheet for Vosburgh at December 31, 2018. (Amounts to be deducted should be indicated by a minus sign.)

Answer 1

VOSBURGH ELECTRONICS CORPORATION
Balance Sheet
At December 31, 2018
Assets
Current Assets
Cash		75000
Short-term investments		190000
Accounts receivable	131000
Less Allowance for uncollectible accounts	-12000	119000
Notes receivable (current portion)		54000
Interest receivable		16000
Inventories		219000
Loans to employees		44000
Prepaid expenses		20000
Total Current Assets			737000
Non-Current Assets
Long-Term Investments			39000
Property, Plant, and Equipment
Land		284000
Building	1590000
Less Accumulated depreciation-Building	-624000	966000
Machinery and equipment	641000
Less Accumulated depreciation-Equipment	-214000	427000
Total Property, Plant, and Equipment, net			1677000
Intangible Assets
Patent		156000
Franchise		44000
Total Intangible Assets			200000
Other Assets
Notes receivable			216000
Total Assets $			2869000
Liabilities and Stockholders' Equity
Liabilities
Current Liabilities
Accounts payable		193000
Dividends payable		14000
Interest payable		20000
Taxes payable		44000
Deferred revenue (current portion)		48000
Total Current Liabilities			319000
Long-Term Debt
Notes payable			308000
Other non-current liabilities
Deferred revenue			16000
Total Liabilities			643000
Stockholders' Equity
Common Stock, 1,400,000 shares of no par stock authorized, 540,000 shares issued and outstanding			2016000
Retained earnings			210000
Total Stockholders' Equity			2226000
Total Liabilities and Stockholders' Equity $			2869000