The following is the ending balances of accounts at December 31, 2018 for the Valley Pump Corporation. Credits Debits 38,000 82,000 107,000 23,000 70,000 146,000 365,000 113,000 Account Title Cash Accounts receivable Inventories Interest payable Marketable securities 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) Notes payable Allowance for uncollectible accounts Common stock Retained earnings Totals 101,000 38,000 25,000 45,000 ces 78,000 33,000 315,000 8,000 330,000 41,000 979,000 979,000 Additional information: 1. The $146,000 balance in the land account consists of $113,000 for the cost of land where the plant and office buildings are located. The remaining $33.000 represents the cost of land being held for speculation. 2. The $70,000 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 $126,000 note due in six months and a $189.000 note due in three annual installments of $63,000 each, with the first payment due in August of 2019. 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.) VALLEY PUMP CORPORATION Balance Sheet At December 31, 2018 Assets Current assests Total current assets 0 Investments Total investments 0 Property, plant, and equipment 0 The following balance sheet for the Los Gatos Corporation was prepared by a recently hired accountant. In reviewing the statement you notice several errors. LOS GATOS CORPORATION Balance Sheet At December 31, 2018 Assets Cash Accounts receivable Inventories Machinery (net) Franchise (net) Total assets Liabilities and Shareholders' Equity Accounts payable Allowance for uncollectible accounts Note payable Bonds payable Shareholders' equity Total liabilities and shareholders' equity $ 74,000 131,000 72,000 137,000 47,000 $461, 000 $ 84,000 22,000 89,000 127,000 139,000 $461,000 Additional information: 1. Cash includes a $37,000 restricted amount to be used for repayment of the bonds payable in 2022. 2. The cost of the machinery is $224,000. 3. Accounts receivable includes a $37,000 note receivable from a customer due in 2021. 4. The note payable includes accrued interest of $22,000. Principal and interest are both due on February 1, 2019. 5. The company began operations in 2013. Income less dividends since inception of the company totals $52,000. 6.67,000 shares of no par common stock were issued in 2013. 100,000 shares are authorized. Required: Prepare a corrected, classified balance sheet. (Amounts to be deducted should be indicated by a minus sign.) LOS GATOS CORPORATION 0. 07.00 Sildies UI TIO pal CONITOIT SLUCK WEIE issueu lll 2013. IUUUUU SIId es die dulonZeu. Required: Prepare a corrected, classified balance sheet. (Amounts to be deducted should be indicated by a minus sign.) LOS GATOS CORPORATION Balance Sheet At December 31, 2018 ES The following are the typical classifications used in a balance sheet: a. Current assets b. Investments and funds f. Current liabilities Long-term g. liabilities h. Paid-in-capital i. Retained earnings Property, plant, and equipment d. Intangible assets e. Other assets C. Required: For each of the following 2016 balance sheet items, use the letters above to indicate the appropriate classification category. (If the item is a contra account, select the appropriate letter with a minus sign.) 1 10 2 11 3 12 13 5 Accrued interest payable Franchise Accumulated depreciation Prepaid insurance, for 2017 Bonds payable, due in 10 years Current maturities of long-term debt Note payable, due in three months Long-term receivables Restricted cash, will be used to retire bonds in 10 years 14 Supplies Machinery Land, in use Deferred revenue Copyrights Preferred stock Land held for speculation Cash equivalents Wages payable 6 15 7 16 8 17 18