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The following is the ending balances of accounts at December 31, 2018 for the Valley Pump Corporation. Account Title Cash Debits Credits Accounts receivable
The following is the ending balances of accounts at December 31, 2018 for the Valley Pump Corporation. Account Title Cash Debits Credits Accounts receivable Inventories 41,000 88,000 113,000 Interest payable Marketable securities 26,000 76,000 152,000 Land Buildings Accumulated depreciation -buildings Equipment Accumulated depreciation -equipment Copyright (net of amortization) Prepaid expenses (next 12 months) Accounts payable Deferred revenues (next 12 months) yable Allowance for uncollectible accounts 380,000 116,000 107,000 41,000 28,000 48,000 81,000 36,000 Notes 330,000 6,000 360,000 37,000 Common stock Retained earnings Totals 1,033,000 1,033,000 Additional information: 1. The $152,000 balance in the land account consists of $116,000 for the cost of land where the plant and office buildings are located. The remaining $36,000 represents the cost of land being held for speculation. 2. The $76,000 in the marketable 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 $132,000 note due in six months and a $198,000 note due in three annual installments of $66,000 each, with the first payment due in August of 2019. Required: Prepare a classified balance sheet for the Valley Pump Corporation at December 31, 2018. (Amounts to be deducted should be indicated by a minus sign.)
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