2016 for the Valley Pump Corporation.
Accounts Receivable 56,000
Interest Payable 10,000
Marketable Securities 44,000
Accumulated Dep – Buildings 100,000
Accumulated Dep – Equipment 25,000
Patents, (net) 12,000
Prepaid Expenses 32,000
Accounts Payable 65,000
Deferred Revenues 20,000
Notes Payable 250,000
Allowance for Doubtful Accounts 5,000
Common Stock 20,000
APIC Common Stock 180,000
Retained Earnings 70,000
Total $745,000 $745,000
1. The $ 120,000 balance in the land account, consists of $ 100,000 for the cost of the land where the plant and office buildings are located. The remaining $ 20,000 consists of the cost of land being held for speculation.
2. The $ 44,000 in marketable securities consist of $30,000 in securities that management will be selling within the next year. The remainder they are unsure of at the present time. The marketable securities are valued at Fair Value.
3. The notes payable account consists of $ 100,000 note due in 6 months, and a $ 150,000 note due in 3 annual installments of $50,000 each, with the first installment due in August of 2017.00
4. The company has 50,000 shares of $ 1.00 par, authorized, and $ 20,000 issued and outstanding.
5. Inventory is valued at LCM
Requirement: Prepare a classified balance sheet in good form. For
Retained Earnings figure, please use the accounting equation.
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