Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

I need help on preparing a classifed balance sheet please. see information below Exercise 3-5 (Algo) Balance sheet preparation [LO3-2, 3-3] The following are the

I need help on preparing a classifed balance sheet please. see information below

image text in transcribed

image text in transcribed

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 Inventory Interest payable Investment in cquity 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 Common stock Retained earnings Totals Debits Credits $ 42,000 90,000 115,000 $ 27,000 78,000 154,200 395,000 117,800 189,800 42,000 29,220 49,220 82,800 37.ee 335.00 7. Bee 370.000 34,Bee $1,651,220 $1,251,202 Additional Information: 1. The $154,000 belonce in the land account consists of $117.000 for the cost of land where the plant end office buildings are located. The remaining $37.000 represents the cost of land being held for speculation. 2. The $78,000 balance in the investment in equity securities account represents en 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 $134,000 note due in six months and a $201.000 note due in three annual installments of $67.000 esch, with the first payment clue 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.) VALLEY PUMP CORPORATION Balance Sheet At December 31, 2021 Assets Current assets: Cash S 42.000 Investment in equity securities Accounts receivable Allowance for uncollectible accounts Inventory Prepaid expenses 42.000 Total current assets Investments: Land Investment in equity securities 0 Total investments Property, plant, and equipment: Land Buildings Equipment Less: Accumulated depreciation - buildings Less: Accumulated depreciation - equipment Net property, plant, and equipment Intangible assets: Copyright (net) Total assets S 42.000 Liabilities and Shareholders' Equity Current liabilities: Accounts payable Interest payable Deferred revenue Notes payable 0 Total current liabilities Long-term liabilities: Mortgage payable 0 Total liabilities Shareholders' equity Common stock Retained earnings Total shareholders' equity Total liabilities and shareholders' equity 0 0 S

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

The Lost Continent The BBCs Europe Editor On Europes Darkest Hour Since World War Two

Authors: Gavin Hewitt

1st Edition

1444764829, 9781444764826

More Books

Students also viewed these Accounting questions