Debits $ 38,000 82,000 107,000 Account Title Credits Cash Accounts receivable Inventory Interest payable Investment in equity securities $ 23,000 70,000 146,000 365,000 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 113,000 101,000 38,000 25,000 45,000 78,000 33,000 315,000 8,000 330,000 41,000 Common stock Retained earnings Totals $979,000 $979,000 Additional Information: 1. The $146,000 balance in the land account consists of $113,000 for the cost of land where the plant and office buildings are located. The remaining $33,000 represents the cost of land being held for speculation. 2. The $70,000 balance in the investment in equity 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. The notes payable account consists of a $126,000 note due in six months and a $189,000 note due in three annual installments of $63,000 each, with the first payment due in August of 2022. Required: Prepare a classified balance sheet for the Valley Pump Corporation at December 31, 2021. Use the additional information to help determine appropriate classifications and account balances. (Amounts to be deducted should be indicated by a minus sign.)

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Account Title
Debits
Credits
$ 38,000
82,000
107,000
Cash
Accounts receivable
Inventory
Interest payable
Investment in equity securities
$ 23,000
70,000
146,000
365,000
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
113,000
101,000
38,000
25,000
45,000
78,000
33,000
315,000
8,000
330,000
41,000
Allowance for uncollectible accounts
Common stock
Retained earnings
Totals
$979,000
$979,000
Additional Information:
1. The $146,000 balance in the land account consists of $113,000 for the cost of land where the plant and office buildings are located.
The remaining $33,000 represents the cost of land being held for speculation.
2. The $70,000 balance in the investment in equity 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. The notes payable account consists of a $126,000 note due in six months and a $189,000 note due in three annual installments of
$63,000 each, with the first payment due in August of 2022.
Required:
Prepare a classified balance sheet for the Valley Pump Corporation at December 31, 2021. Use the additional information to help
determine appropriate classifications and account balances. (Amounts to be deducted should be indicated by a minus sign.)
Transcribed Image Text:Account Title Debits Credits $ 38,000 82,000 107,000 Cash Accounts receivable Inventory Interest payable Investment in equity securities $ 23,000 70,000 146,000 365,000 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 113,000 101,000 38,000 25,000 45,000 78,000 33,000 315,000 8,000 330,000 41,000 Allowance for uncollectible accounts Common stock Retained earnings Totals $979,000 $979,000 Additional Information: 1. The $146,000 balance in the land account consists of $113,000 for the cost of land where the plant and office buildings are located. The remaining $33,000 represents the cost of land being held for speculation. 2. The $70,000 balance in the investment in equity 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. The notes payable account consists of a $126,000 note due in six months and a $189,000 note due in three annual installments of $63,000 each, with the first payment due in August of 2022. Required: Prepare a classified balance sheet for the Valley Pump Corporation at December 31, 2021. Use the additional information to help determine appropriate classifications and account balances. (Amounts to be deducted should be indicated by a minus sign.)
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