Exercise 3-5 (Static) Balance sheet preparation (L03-2, 3-3] The following are the ending balances of accounts at December 31, 2021, for the Valley Pump Corporation. Account Title Cash Accounts receivable Inventory Interest payable Investment in equity securities Land Buildings Accumulated depreciation-buildings Equipment Accumulated depreciation-equipment econd Prepaid expenses (next 12 months) Accounts payable Deferred revenue (next 12 months) Notes payable Allowance for uncollectible accounts Common stock Retained earnings Totals Debits Credits $ 25,000 56,000 81,000 $ 10,000 44,000 120,000 300,000 100,000 75,000 25,000 12,000 32,000 65,000 20,000 250,000 5,000 200,000 70,000 $ 745,000 $745,000 Copyright (net) Additional Information: 1. The $120,000 balance in the land account consists of $100,000 for the cost of land where the plant and office buildings are located. The remaining $20,000 represents the cost of land being held for speculation. 2. The $44,000 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 $100,000 note due in six months and a $150,000 note due in three annual installments of $50,000 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.) 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.) VALLEY PUMP CORPORATION Balance Sheet At December 31, 2021 Assets Current assets: Cash $ 25,000 Inventory Accounts receivable Allowance for uncollectible accounts Investment in equity securities 81,000 56,000 (5,000) 44,000 Prepaid expenses 32,000 Total current assets 233,000 Investments: Land $ 120,000 Total investments 120,000 Property, plant, and equipment: 0 0 0 Net property, plant, and equipment Intangible assets: Total assets $ 353,000 Liabilities and Shareholders' Equity Current liabilities: Total current liabilities 0 Long-term liabilities: Total liabilities 0 Shareholders' equity: 0 Total shareholders' equity Total liabilities and shareholders' equity $ 0