Question

The following is the ending balances of accounts at December 31, 2018 for the Vosburgh Electronics Corporation.

Account Title	Debits			Credits
Cash		83,000
Short-term investments		198,000
Accounts receivable		139,000
Long-term investments		43,000
Inventories		223,000
Loans to employees		48,000
Prepaid expenses (for 2019)		24,000
Land		288,000
Building		1,630,000
Machinery and equipment		645,000
Patent		160,000
Franchise		48,000
Note receivable		290,000
Interest receivable		20,000
Accumulated depreciation—building				628,000
Accumulated depreciation—equipment				218,000
Accounts payable				197,000
Dividends payable (payable on 1/16/19)				18,000
Interest payable				24,000
Taxes payable				48,000
Deferred revenue				68,000
Notes payable				316,000
Allowance for uncollectible accounts				16,000
Common stock				2,032,000
Retained earnings				274,000
Totals		3,839,000		3,839,000

Additional information:

1. The common stock represents 1.2 million shares of no par stock authorized, 580,000 shares issued and outstanding.
2. The loans to employees are due on June 30, 2019.
3. The note receivable is due in installments of $58,000, 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 2019 and $58,000 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.
5. Deferred revenue represents customer payments for extended service contracts. Seventy percent of these contracts expire in 2019, the remainder in 2020.
6. Notes payable consists of two notes, one for $108,000 due on January 15, 2020, and another for $208,000 due on June 30, 2021.

Required:
Prepare a classified balance sheet for Vosburgh at December 31, 2018.

Answer 1