Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

The following is the ending balances of accounts at December 31, 2016, for the Vosburgh Electronics Corporation. Account Title Debits Credits Cash 85,000 Short-term investments

The following is the ending balances of accounts at December 31, 2016, for the Vosburgh Electronics Corporation.

Account Title Debits Credits
Cash 85,000
Short-term investments 200,000
Accounts receivable 141,000
Long-term investments 44,000
Inventories 224,000
Loans to employees 49,000
Prepaid expenses (for 2017) 25,000
Land 289,000
Building 1,640,000
Machinery and equipment 646,000
Patent 161,000
Franchise 49,000
Note receivable 295,000
Interest receivable 21,000
Accumulated depreciationbuilding 629,000
Accumulated depreciationequipment 219,000
Accounts payable 198,000
Dividends payable (payable on 1/16/17) 19,000
Interest payable 25,000
Taxes payable 49,000
Deferred revenue 69,000
Notes payable 318,000
Allowance for uncollectible accounts 17,000
Common stock 2,036,000
Retained earnings 290,000
Totals 3,869,000 3,869,000

Additional information:
1.

The common stock represents 1.3 million shares of no par stock authorized, 590,000 shares issued and outstanding.

2. The loans to employees are due on June 30, 2017.
3.

The note receivable is due in installments of $59,000, payable on each September 30. Interest is payable annually.

4.

Short-term investments consist of marketable equity securities that the company plans to sell in 2017 and $59,000 in treasury bills purchased on December 15 of the current year that mature on February 15, 2017. Long-term investments consist of marketable equity securities that the company does not plan to sell in the next year.

5.

Deferred revenue represents customer payments for extended service contracts. Seventy five percent of these contracts expire in 2017, the remainder in 2018.

6.

Notes payable consists of two notes, one for $109,000 due on January 15, 2018, and another for $209,000 due on June 30, 2019.

Required:

Prepare a classified balance sheet for Vosburgh at December 31, 2016.(Amounts to be deducted should be indicated by a minus sign.)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Intermediate Accounting

Authors: David Spiceland, James Sepe, Mark Nelson, Wayne Thomas

8th edition

978-1259997525, 1259997529, 978-1259548185

More Books

Students also viewed these Accounting questions