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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:

  1. 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.
  2. 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.
  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 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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