Exercise 3-5 (Algo) Balance sheet preparation [LO3-2, 3-3] The following are the ending balances of accounts at December 31, 2024, for the Valley Pump Corporation. Account Title Cash Debits $ 45,000 Credits Accounts receivable Inventory 96,000 121,000 Interest payable $ 30,000 Investment in equity securities 84,000 Land 160,000 Buildings 400,000 Accumulated depreciation-buildings 120,000 Equipment 115,000 Accumulated depreciation-equipment 45,000 Copyright (net) 32,000 Prepaid expenses (next 12 months) 52,000 Accounts payable 85,000 Deferred revenue (next 12 months) 40,000 Notes payable 350,000 Allowance for uncollectible accounts Common stock Retained earnings Totals 7,000 400,000 28,000 $ $ 1,105,000 1,105,000 Additional Information: 1. The $160,000 balance in the land account consists of $120,000 for the cost of land where the plant and office buildings are located. The remaining $40,000 represents the cost of land being held for speculation. 2. The $84,000 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 $140,000 note due in six months and a $210,000 note due in three annual installments of $70,000 each, with the first payment due in August of 2025. VALLEY PUMP CORPORATION Balance Sheet At December 31, 2024 Current assets: Cash Investment in equity securities Accounts receivable Inventory Prepaid expenses Total current assets Assets Investments: Investment in equity securities Land $ 42,000 40,000 Total investments Property, plant, and equipment: Land 120,000 Buildings 400,000 Equipment 115,000 Less: Accumulated depreciation - buildings Net property, plant, and equipment Intangible assets: Copyright (net) 635,000 (165,000) x $ 45,000 42,000 89,000 121,000 52,000 349,000 82,000 470,000 32,000 Total assets $ 933,000 Liabilities and Shareholders' Equity Current liabilities: Accounts payable Interest payable Deferred revenue Notes payable (current) Total current liabilities Long-term liabilities: Notes payable (long-term) Total liabilities Shareholders' equity: Common stock Retained earnings Total shareholders' equity Total liabilities and shareholders' equity $ 400,000 28,000 $ 85,000 30,000 40,000 140,000 295,000 210,000 505,000 428,000 $ 933,000