Question

The following is the ending balances of accounts at December 31, 2021, for the Vosburgh Electronics Corporation. Credits Account Title Cash Short-term investments Accounts receivable Long-term investments Inventory Receivables from employees Prepaid expenses (for 2022) Land Building Equipment Patent (net) Franchise (net) Notes receivable Interest receivable Accumulated depreciation-building Accumulated depreciation-equipment Accounts payable Dividends payable (payable on 1/16/2022) Interest payable Income Taxes payable Deferred revenue Notes payable Allowance for uncollectible accounts Common stock Retained earnings Totals Debits 69,800 184, eee 125, Bee 36, eee 216, eee 41, eee 17,000 281,800 1,560,800 638, eee 153,800 41,800 255,800 13, eee 621, eee 211,000 190,000 11,000 17, eee 41, eee 61, eee 382, eee 9,800 2,084, eee 162, Bee 3,629,800 3,629,800 Additional Information: 1. The common stock represents 1.1 million shares of no par stock authorized. 510.000 shares issued and outstanding. 2. The receivables from employees are due on June 30, 2022 3. The notes receivable are due in installments of $51.000. 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 $51.000 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 $101.000 due on January 15, 2023. and another for $201.000 due on June 30, 2024. Required: Prepare a classified balance sheet for Vosburgh at December 31, 2021. (Amounts to be deducted should be Indicated by a minus sign.)

Answer 1

VOSBURGH ELECTRONICS CORPORATION
Balance Sheet
At December 31, 2021
Assets
Current assets:
Cash		$ 120,000
Short-term investments		$ 133,000
Accounts receivable	$ 125,000
Allowance for uncollectible accounts	($ 9,000)
Net accounts receivable		$ 116,000
Inventory		$ 216,000
Receivables from employees		$ 41,000
Prepaid expenses		$ 17,000
Notes receivable		$ 51,000
Interest receivable		$ 13,000
Total current assets		$ 707,000
Investments:
Long-term investments	$ 36,000
Notes receivable [255,000-51,000]	$ 204,000
Total investments		$ 240,000
Property,plant and equipment:
Land	$ 281,000
Building	$ 1,560,000
Accumulated depreciation-building	($ 621,000)
Equipment	$ 638,000
Accumulated depreciation-equipment	($ 211,000)
Total property,plant and equipment		$ 1,647,000
Intangible assets:
Patent	$ 153,000
Franchise	$ 41,000
Total intangible assets		$ 194,000
Total assets		$ 2,788,000
Liabilities and stockholders' Equity
Current liabilities:
Accounts payable		$ 190,000
Dividends payable		$ 11,000
Interest payable		$ 17,000
Income taxes payable		$ 41,000
Deferred revenue [61,000 x 75%]		$ 45,750
Total current liabilities		$ 304,750
Long-term liabilities:
Notes payable	$ 302,000
Deferred revenue [61,000 x 25%]	$ 15,250
Total long term liabilities		$ 317,250
Total liabilities		$ 622,000
Stockholder's equity:
Common stock	$ 2,004,000
Retained earnings	$ 162,000
Total stockholders' equity		$ 2,166,000
Total liabilities and stockholders' equity		$ 2,788,000

Calculation:

Treasury bills consider as a cash and cash equivalents so we add the treasury bills to cash.

Cash = $69,000 + $51,000 = $120,000

Treasury bills is a marketable securities so we subtracted from short-term investments.

Short-term investments = $184,000 - $51,000 = $133,000