Question

can someone please help. what is missing in my answer?

The following are the ending balances of accounts at December 31, 2021, for the Valley Pump Corporation. Account Title Credits Cash Debits $ 34,000 74,000 99,000 $ 19,000 62,000 138,000 345,000 109,000 93,000 34,000 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 21,000 41,000 74,000 29,000 295,000 9,000 290,000 48,000 $907,000 $907,000

Answer 1

VALLEY PUMP CORPORATION
Balance Sheet
At December 31, 2021
Assets
Current assets:
Cash		$34000
Accounts receivable		74000
Inventory		99000
Prepaid expenses		41000
Allowance for uncollectible accounts		(9000)
Investment in equity securities		31000
Total current assets		270000
Investments:
Land	$29000
Investment in equity securities	31000
Total investments		60000
Property, plant and equipment:
Land	109000
Buildings	345000
Equipment	93000
	547000
Less; Accumulated depreciation- buildings	(109000)
Less; Accumulated depreciation- equipment	(34000)
Net property, plant and equipment		404000
Intangible assets:
Copyright (net)		21000
Total assets		$755000
Liabilities and Shareholders' equity
Current liabilities:
Accounts payable		$74000
Notes payable		118000
Deferred revenue		29000
Interest payable		19000
Current maturities of long term debt		59000
Total current liabilities		299000
Long-term liabilities:
Notes payable		118000
Total liabilities		417000
Shareholders' Equity
Common stock	$290000
Retained earnings	48000
Total shareholders' equity		338000
Total liabilities and shareholders' equity		$755000

All answers are correct only one item is included in the current liabilities.

In additional information (3)

Total notes payable is $295000 out of which $118000 is due in six months which means that they are current liabilities and the remaining $177000 due in three annual installments of $59000 each and the first payment is due in August of 2022 which means that the first payment maturity is within one year. So, they are classified in current liabilities as current maturities of long term debt and the remaining $118000 (177000-59000) will due after one year that's why they are classified as long term notes payable.