The following are the ending balances of accounts at December 31, 2024, for the Valley Pump Corporation. 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 Coneon stock Retained earnings Totals Debits $ 40,000 86,000 111,000 74,000 150,000 375,000 105,000 27,000 47,000 Credits $ 25,000 115,000 40,000 80,000 35,000 325,000 5,000 350,000 40,000 $ 1,015,000 $1,015,000 Additional Information: 1. The $150,000 balance in the land account consists of $115,000 for the cost of land where the plant and office buildings are located. The remaining $35,000 represents the cost of land being held for speculation. 2. The $74,000 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 $130,000 note due in six months and a $195,000 note due in three annual installments of $65,000 each, with the first payment due in August of 2025. Required: Prepare a classified balance sheet for the Valley Pump Corporation at December 31, 2024. Use the additional information to help determine appropriate classifications and account balances.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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The following are the ending balances of accounts at December 31, 2024, for the Valley Pump Corporation.
Debits
$ 40,000
86,000
111,000
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
Connon stock
Retained earnings
Totals
74,000
150,000
375,000
105,000
27,000
47,000
Credits
$ 25,000
115,000
40,000
80,000
35,000
325,000
5,000
350,000
40,000
$1,015,000 $1,015,000
Additional Information:
1. The $150,000 balance in the land account consists of $115,000 for the cost of land where the plant and office buildings are
located. The remaining $35,000 represents the cost of land being held for speculation..
2. The $74,000 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 $130,000 note due in six months and a $195,000 note due in three annual installments
of $65,000 each, with the first payment due in August of 2025.
Required:
Prepare a classified balance sheet for the Valley Pump Corporation at December 31, 2024. Use the additional information to help
determine appropriate classifications and account balances.
Transcribed Image Text:The following are the ending balances of accounts at December 31, 2024, for the Valley Pump Corporation. Debits $ 40,000 86,000 111,000 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 Connon stock Retained earnings Totals 74,000 150,000 375,000 105,000 27,000 47,000 Credits $ 25,000 115,000 40,000 80,000 35,000 325,000 5,000 350,000 40,000 $1,015,000 $1,015,000 Additional Information: 1. The $150,000 balance in the land account consists of $115,000 for the cost of land where the plant and office buildings are located. The remaining $35,000 represents the cost of land being held for speculation.. 2. The $74,000 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 $130,000 note due in six months and a $195,000 note due in three annual installments of $65,000 each, with the first payment due in August of 2025. Required: Prepare a classified balance sheet for the Valley Pump Corporation at December 31, 2024. Use the additional information to help determine appropriate classifications and account balances.
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