The following is the ending balances of accounts at December 31, 2018 for the Valley Pump Corporation. Account Title Debits Credits Cash 40,000 Accounts receivable 86,000 Inventories 111,000 Interest payable 25,000 Marketable securities 74,000 Land 150,000 Buildings 375,000 Accumulated depreciation-buildings 115,000 Equipment 105,000 Accumulated depreciation-equipment 40,000 Copyright (net of amortization) 27,000 Prepaid expenses ( next 12 months) 47,000 Accounts payable 80,000 Deferred revenues (next 12 months ) 35,000 Notes payable 325,000 Allowance for uncollectible accounts 5,000 Common stock 350,000 Retained earnings 40,000 Totals 1,015,000 1,015,000 Additional information: 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. The $74,000 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. 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 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.)
The following is the ending balances of accounts at December 31, 2018 for the Valley Pump Corporation. Account Title Debits Credits Cash 40,000 Accounts receivable 86,000 Inventories 111,000 Interest payable 25,000 Marketable securities 74,000 Land 150,000 Buildings 375,000 Accumulated depreciation-buildings 115,000 Equipment 105,000 Accumulated depreciation-equipment 40,000 Copyright (net of amortization) 27,000 Prepaid expenses ( next 12 months) 47,000 Accounts payable 80,000 Deferred revenues (next 12 months ) 35,000 Notes payable 325,000 Allowance for uncollectible accounts 5,000 Common stock 350,000 Retained earnings 40,000 Totals 1,015,000 1,015,000 Additional information: 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. The $74,000 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. 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 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.)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:The following is the ending balances of accounts at December 31, 2018 for the Valley Pump
Corporation. Account Title Debits Credits Cash 40,000 Accounts receivable 86,000 Inventories
111,000 Interest payable 25,000 Marketable securities 74,000 Land 150,000 Buildings
375,000 Accumulated depreciation-buildings 115,000 Equipment 105,000 Accumulated
depreciation-equipment 40,000 Copyright (net of amortization) 27,000 Prepaid expenses (
next 12 months) 47,000 Accounts payable 80,000 Deferred revenues (next 12 months
) 35,000 Notes payable 325,000 Allowance for uncollectible accounts 5,000 Common stock
350,000 Retained earnings 40,000 Totals 1,015,000 1,015,000 Additional information: 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. The $74,000 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. 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 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.)
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