Exercise 3-5 (Algo) Balance sheet preparation [LO3-2, 3-3] The following are the ending balances of accounts at December 31, 2021, for the Valley Pump Corporation. Account Title Cash Accounts receivable $ Debits 40,000 86,000 Credita Inventory Interest payable 111,000 $ 25,000 Investment in equity securities Land Buildings 74,000 150,000 375,000 Accumulated depreciation-buildings. 115,000 Equipment 105,000 Accumulated depreciation-equipment 40,000 Copyright (net) 27,000 Prepaid expenses (next 12 months). 47,000 Accounts payable 80,000 Deferred revenue (next 12 months) 35,000 Notes payable 325,000 Common stock Allowance for uncollectible accounts Retained earnings 5.000 350,000 40,000 Totals $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 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.) Current assets: Cash Investment in equity securities VALLEY PUMP CORPORATION Balance Sheet Accounts receivable Allowance for uncollectible accounts Inventory Prepaid expenses Total current assets Investments: Investment in equity securities Land Total investments Property, plant, and equipment: Land Buildings Equipment Net property, plant, and equipment Intangible assets: At December 31, 2021 Assets 0 $ 40,000 37,000 86,000 163,000 + 0 0 Net property, plant, and equipment Intangible assets: 0 0 $ 163,000 Total assets Liabilities and Shareholders' Equity Current liabilities: Accounts payable Interest payable Deferred revenue Notes payable (current) Notes payable (current maturities of long-term debt) 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 0 $