Question
The following are the ending balances of accounts at December 31, 2021, for the Plumbing Supplies Corporation. Account Title Debits Credits Cash $ 42,000 Accounts
The following are the ending balances of accounts at December 31, 2021, for the Plumbing Supplies Corporation.
Account Title |
| Debits | Credits | |||
Cash | $ | 42,000 |
|
|
|
|
Accounts receivable |
| 90,000 |
|
|
|
|
Inventory |
| 115,000 |
|
|
|
|
Interest payable |
|
|
| $ | 27,000 |
|
Investment in equity securities |
| 78,000 |
|
|
|
|
Land |
| 154,000 |
|
|
|
|
Buildings |
| 385,000 |
|
|
|
|
Accumulated depreciationbuildings |
|
|
|
| 117,000 |
|
Equipment |
| 109,000 |
|
|
|
|
Accumulated depreciationequipment |
|
|
|
| 42,000 |
|
Copyright (net) |
| 29,000 |
|
|
|
|
Prepaid expenses (next 12 months) |
| 49,000 |
|
|
|
|
Accounts payable |
|
|
|
| 82,000 |
|
Deferred revenue (next 12 months) |
|
|
|
| 37,000 |
|
Notes payable |
|
|
|
| 335,000 |
|
Allowance for uncollectible accounts |
|
|
|
| 7,000 |
|
Common stock |
|
|
|
| 370,000 |
|
Retained earnings |
|
|
|
| 34,000 |
|
Totals | $ | 1,051,000 |
| $ | 1,051,000 |
|
Additional Information:
- The $154,000 balance in the land account consists of $117,000 for the cost of land where the plant and office buildings are located. The remaining $37,000 represents the cost of land being held for speculation.
- The $78,000 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.
- 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 each, with the first payment due in August of 2022.
Required: Prepare a classified balance sheet for the Plumbing Supplies Corporation at December 31, 2021. Use the additional information to help determine appropriate classifications and account balances.
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