Question

Saved The following is the ending balances of accounts at December 31, 2018 for the Valley Pump Corporation. Account Title Debits 30,000 66,000 91,000 Credits Cash Accounts receivable Inventories Interest payable Marketable securities Land Buildings Accumulated depreciation-buildings Equipment Accumulated depreciation-equipment Copyright (net of amortization) Prepaid expenses (next 12 months) Accounts payable Deferred revenues (next 12 months) Notes payable Allowance for uncollectible accounts 15,000 54,000 130,000 325,e00 105,000 85,000 30,000 17,e00 37,000 70,000 25,000 275,000 5,000 25e,eee 60,000 Common stock Retained earnings Totals 835,000 835,000 Additional information: 1. The $130,000 balance in the land account consists of $105,000 for the cost of land where the plant and office buildings are located. The remaining $25,000 represents the cost of land being held for speculation. 2. The $54,000 in the marketable securities account represents an investment in the common stock of another corporation. Valley intends to sell one-half of the stock within the next year 3. Thé notes payable account consists ofa $110,000 note due in six months and a $165,000 note due in three annual installments of $55,000 each, with the first payment due in August of 2019. Required: Prepare a classified balance sheet for the Valley Pump Corporation at December 31, 2018. (Amounts to be deducted should be indicated by a minus sign.) VALLEY PUMP CORPA

Answer 1

VALLEY POMP CORPORATION Balance sheet At December 31, 2018 Assets current Assets: cash 30000 Account Revable net) (66000 - 5000) 6100o Inventories 91000 marketable securities 27000 prepard expenses 37000 TOTO curent Assets $ 2416000 Investments: marketable securities 27000 Land 25000 TOTAL Investment 152000 property, plant and equipment TO SOOD Land 130.000 Building 325000 Equipment 85ooo $ 540,000 Less: Accumulated depreciation (13 5000) 3 80000 wet property Plant & Eaulpment $ 5000 intangiable Assets: copy right 17000 for Assets F 695000 I nccumulated Depo Accumud DepEOS000 + 30,000 TS

Llabilities and sharehoden's Equity curent liabilities: accounts payable 70,000 Uneamed Revenue (Defensed rev.) 25000 nore payable $ 1,10 000 Interest payable 15000 current matusities of longtem Deot 55000 Total curent liabilite $ 275000 Lon 9. tem liabilities Note-payable 110,000 shareholdes's squity: - common stock $ 250000 Rerarned earnings 60000 Totoy shareholder's equity $ 3,10,000 Total liabilite shoochoides Equity $ 695000 (Land) $130,000 (Balang) Land & 105000 Land held for speculation - Investment $ 25000 122 short term marketable securities a 54000 * 12 = 270oo. Investment marketable security suooox Y2 - 27000 (3) current liabilities: Nore payable current mathnith - - $110,000 SSooo. 3 cong tum liability: Nole payable 75000 - 1,10,000-SS000 - $ 1,10,000