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The following are the ending balances of accounts at December 31, 2021, for the Valley Pump Corporation. Account Title Debits Credits Cash $ 26,000 Accounts
The following are the ending balances of accounts at December 31, 2021, for the Valley Pump Corporation.
Account Title | Debits | Credits | ||||
Cash | $ | 26,000 | ||||
Accounts receivable | 58,000 | |||||
Inventory | 83,000 | |||||
Interest payable | $ | 11,000 | ||||
Investment in equity securities | 46,000 | |||||
Land | 122,000 | |||||
Buildings | 305,000 | |||||
Accumulated depreciationbuildings | 101,000 | |||||
Equipment | 77,000 | |||||
Accumulated depreciationequipment | 26,000 | |||||
Copyright (net) | 13,000 | |||||
Prepaid expenses (next 12 months) | 33,000 | |||||
Accounts payable | 66,000 | |||||
Deferred revenue (next 12 months) | 21,000 | |||||
Notes payable | 255,000 | |||||
Allowance for uncollectible accounts | 6,000 | |||||
Common stock | 210,000 | |||||
Retained earnings | 67,000 | |||||
Totals | $ | 763,000 | $ | 763,000 | ||
Additional Information:
- The $122,000 balance in the land account consists of $101,000 for the cost of land where the plant and office buildings are located. The remaining $21,000 represents the cost of land being held for speculation.
- The $46,000 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 $102,000 note due in six months and a $153,000 note due in three annual installments of $51,000 each, with the first payment due in August of 2022.
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.
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