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 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 44,000 94,000 119,000 $ 29,000 82,000 158,000 395,000 119,000 113,000 44,000 31,000 51,000 84,000 39,000 345,000 6,000 390,000 31,000 $1,087,000 $1,087,000 Additional Information: 1. The $158,000 balance in the land account consists of $119,000 for the cost of land where the plant and office buildings are located. The remaining $39,000 represents the cost of land being held for speculation. 2. The $82,000 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 $138,000 note due in six months and a $207,000 note due in three annual installments of $69.000 each, with the first payment due in August of 2022 Required: Dumn Connntinn inanmhor an anne inn 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 Investment in equity securities Accounts receivable Allowance for uncollectible accounts Inventory Prepaid expenses $ 44,000 41,000 88,000 119,000 51,000 343,000 Total current assets Investments Investment in equity securities Land $ 41,000 39,000 80,000 Total investments Property, plant, and equipment: Land Buildings Equipment 119,000 395,000 113,000 627,000 cises a Saved Help 627,000 (119,000) (44,000) Less: Accumulated depreciation - buildings Less: Accumulated depreciation - equipment Net property, plant, and equipment Intangible assets: Copyright (net) 464,000 31,000 $ 918,000 Total assets Liabilities and Shareholders' Equity Current liabilities: Accounts payable Interest payable Deferred revenue Notes payable Current maturities of long-term debt 84,000 29,000 39,000 138,000 69,000 359,000 Total current liabilities Long-term liabilities: Notes payable 138,000 497,000 Total liabilities Shareholders' equity Common stock Retained earnings $ 390,000 31,000 Total shareholders' equity Total liabilities and shareholders' equity $ 421,000 918,000
