Question
The following is the ending balances of accounts at December 31, 2018 for the Vosburgh Electronics Corporation. Account TitleDebitsCreditsCash67,000Short-term investments182,000Accounts receivable123,000Long-term investments35,000Inventories215,000Loans to employees40,000Prepaid expenses
The following is the ending balances of accounts at December 31, 2018 for the Vosburgh Electronics Corporation.
Account TitleDebitsCreditsCash67,000Short-term investments182,000Accounts receivable123,000Long-term investments35,000Inventories215,000Loans to employees40,000Prepaid expenses (for 2019)16,000Land280,000Building1,550,000Machinery and equipment637,000Patent152,000Franchise40,000Note receivable250,000Interest receivable12,000Accumulated depreciationbuilding620,000Accumulated depreciationequipment210,000Accounts payable189,000Dividends payable (payable on 1/16/19)10,000Interest payable16,000Taxes payable40,000Deferred revenue60,000Notes payable300,000Allowance for uncollectible accounts8,000Common stock2,000,000Retained earnings146,000Totals3,599,0003,599,000
Additional information:
- The common stock represents 1 million shares of no par stock authorized, 500,000 shares issued and outstanding.
- The loans to employees are due on June 30, 2019.
- The note receivable is due in installments of $50,000, payable on each September 30. Interest is payable annually.
- Short-term investments consist of marketable equity securities that the company plans to sell in 2019 and $50,000 in treasury bills purchased on December 15 of the current year that mature on February 15, 2019. Long-term investments consist of marketable equity securities that the company does not plan to sell in the next year.
- Deferred revenue represents customer payments for extended service contracts. Eighty percent of these contracts expire in 2019, the remainder in 2020.
- Notes payable consists of two notes, one for $100,000 due on January 15, 2020, and another for $200,000 due on June 30, 2021.
Required:
a classified balance sheet for Vosburgh at December 31, 2018.(Amounts to be deducted should be indicated by a minus sign.)
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