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
ASSESTS
Current Assets
Cash and Cash Equivalents ($69,000+$51,000)		120,000
Notes Receivable		51,000
Accounts Receivable	125,000
Less:Allowance for uncollectibel accounts	(9,000)
Net Accounts Receivable		116,000
Loans to employees		41,000
Marketable Securities (184,000 - 51,000)		133,000
Inventories		216,000
Prepaid Expenses		17,000
Interest Receivables		13,000
Total Current Assets		707,000
Investments
Notes Receivable (255,000 - 51,000)	204,000
Marketable Securities	36,000
Total Investments		240,000
Property,plant and equipment
Land		281,000
Bujilding	1,560,000
Less: Accumulated depreciation-building	621,000
		939,000
Equipment	638,000
Less:Accumulated depreciation-equipment	211,000
		427,000
Net 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 stockholder's equity
Current Liabilities
Accounts Payable		190,000
Dividend Payable		11,000
Interest Payable		17,000
Unearned Revenue (61,000 * 75%)		45,750
Income Taxes Payable		41,000
Total Current Liabilities		304,750
Long-term Liabilities
Notes Payable	302,000
Deferred Revenue (61,000 * 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 Stopckholder's Equity		2,166,000
Total Liabilities and Stockholder's Equity		2,788,000

(NOTE: Notes Payable are fully long term because they are not due in the next year)