Question

ving uing balances of accounts at December 31, 2021, for $ 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 $ 40,000 86,000 111,000 25,000 74,000 150,000 375,000 115,000 105,000 40,000 27,000 47,000 80,000 35,000 325,000 5,000 350,000 40,000 $1,015,000 $1,215,000

Answer 1

VALLEY PUMP CORPORATION Balance sheet At December 31, 2021 Assets Cument assets: Cash Accounts Receivable Inventory Prepaid expenses Allowance for uncollectible accounts Investment in equity scurities $ 40,000 $86,000 $ 111,000 $ 47,000 $ (5000) $ 37,000 $316,000 Total current assets Investments: hand Investment in equity seunites 35,000 $ $ 37,000 $ 72,000 Total investments Propesty, plant and equipment: hand Buildings Equipment $ 115,000 $375,000 $ 105,ooo Levi Aceumulated depreciation buildings! (119,000) ressi Accumulated depreciation equipment $(40,000) Net property, plant and equipment $ 440,000 Intangible assets! Copyright (net) $ 27,000 Total assets $855,ooo

Liabilities and shareholders' equity Current liabilities: Accounts payable Notes payable Deferred sevenue Interest payable Current madurities of long term debt оос / $80,000 $130 $ 35,000 $ 25,000 $ 65,000 $335,000 Total current liabilities Long term liabilities: Notes Payable $ 130,000 $ 465,000 Total liabilities Shareholders' equity: ( Common stock Retained earnings $350,000 $49000 Total Shareholders equity Total liabilities and shareholders' equity $390,000 1$ 855,000 Calculation! Investment in equity securities = $74,000 x 1 늘 $ 37,000