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The following are the ending balances of accounts at December 31, 2024, for the Valley Pump Corporation. Account Title Debits Credits Cash $ 35,000 Accounts
The following are the ending balances of accounts at December 31, 2024, for the Valley Pump Corporation.
Account Title | Debits | Credits |
---|---|---|
Cash | $ 35,000 | |
Accounts receivable | 76,000 | |
Inventory | 101,000 | |
Interest payable | $ 20,000 | |
Investment in equity securities | 64,000 | |
Land | 140,000 | |
Buildings | 350,000 | |
Accumulated depreciationbuildings | 110,000 | |
Equipment | 95,000 | |
Accumulated depreciationequipment | 35,000 | |
Copyright (net) | 22,000 | |
Prepaid expenses (next 12 months) | 42,000 | |
Accounts payable | 75,000 | |
Deferred revenue (next 12 months) | 30,000 | |
Notes payable | 300,000 | |
Allowance for uncollectible accounts | 5,000 | |
Common stock | 300,000 | |
Retained earnings | 50,000 | |
Totals | $ 925,000 | $ 925,000 |
Additional Information:
- The $140,000 balance in the land account consists of $110,000 for the cost of land where the plant and office buildings are located. The remaining $30,000 represents the cost of land being held for speculation.
- The $64,000 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 $120,000 note due in six months and a $180,000 note due in three annual installments of $60,000 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.
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