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The following are the ending balances of accounts at December 31, 2024, for the Valley Pump Corporation. Account Title Cash Accounts receivable Debits $
The following are the ending balances of accounts at December 31, 2024, for the Valley Pump Corporation. Account Title Cash Accounts receivable Debits $ 25,000 Credits 56,000 Inventory 81,000 Interest payablet $ 10,000 Investment in equity securities 44,000 Land 120,000 Buildings 300,000 Accumulated depreciation-buildings 100,000 Equipment Accumulated depreciation-equipment Copyright (net) 75,000 25,000 12,000 32,000 Accounts payable 65,000 20,000 250,000 Prepaid expenses (next 12 months) Deferred revenue (next 12 months) Notes payable Allowance for uncollectible accounts. Connon stock Retained earnings Totals Additional Information: 5,000 200,000 70,000 $ 745,000 $ 745,000 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 2025, Required: Prepare a classified balance sheet for the Valley Pump Corporation at December 31, 2024. Use the additional information to help determine appropriate classifications and account balances. Note: Amounts to be deducted should be indicated by a minus sign. VALLEY PUMP CORPORATION Balance Sheet At December 31, 2024 Current assets: Cash Accounts receivable Inventory Investment in equity securities Prepaid expenses Allowance for uncollectible accounts Total current assets Investments: Investment in equity securities Land Total investments Property, plant, and equipment: Land Buildings Equipment Assets 120 0 Less: Accumulated depreciation - buildings $ 25,000 56,000 81,000 32,000 5,000 199,000 120 Net property, plant, and equipment Intangible assets: Copyright (net) 0 $ Total assets 199,120 Liabilities and Shareholders' Equity Current liabilities: Accounts payable Deferred revenue Notes payable (current) Interest payable Notes payable (current maturities of long-term debt) Total current liabilities Long-term liabilities: Notes payable (current) Total liabilities Shareholders' equity: Common stock Retained earnings Total shareholders' equity 0 0 0 Total liabilities and shareholders' equity $ 0
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