Question

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

Account Title	Debits			Credits
Cash		97,000
Short-term investments		212,000
Accounts receivable		153,000
Long-term investments		50,000
Inventories		230,000
Loans to employees		55,000
Prepaid expenses (for 2017)		31,000
Land		295,000
Building		1,700,000
Machinery and equipment		652,000
Patent		167,000
Franchise		55,000
Note receivable		325,000
Interest receivable		27,000
Accumulated depreciation—building					635,000
Accumulated depreciation—equipment					225,000
Accounts payable					204,000
Dividends payable (payable on 1/16/17)					25,000
Interest payable					31,000
Taxes payable					55,000
Deferred revenue					75,000
Notes payable					330,000
Allowance for uncollectible accounts					23,000
Common stock					2,060,000
Retained earnings					386,000
Totals		4,049,000			4,049,000

  

Additional information:

1.	The common stock represents 1.2 million shares of no par stock authorized, 650,000 shares issued and outstanding.
2.	The loans to employees are due on June 30, 2017.
3.	The note receivable is due in installments of $65,000, 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 $65,000 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. Eighty percent of these contracts expire in 2017, the remainder in 2018.
6.	Notes payable consists of two notes, one for $115,000 due on January 15, 2018, and another for $215,000 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.)

Answer 1

Classified Balance Sheet is as prepared below:

Vosburgh Electronics Corporation
Classified Balance Sheet
December 31, 2016
Particulars	Amount ($)	Amount ($)
ASSETS
Current Assets:
Cash and Cash Equivalents (97,000+65,000)	162,000
Marketable securities (212,000-65,000)	147,000
Account Receivable	153,000
Less: allowance for uncollectible accounts	23,000
Loan to employees	55,000
Interest Receivable	27,000
Notes Receivable (1 year receivable)	65,000
Inventories	230,000
Prepaid Expenses	31,000
Total Current Assets		847,000
Investments
Marketable securities	50,000
Note Receivable	260,000
Total long term investments		310,000
Property, plant and equipment
Land	295,000
Buildings	1,700,000
Less: Accumulated Depreciation	635,000
Machinery and Equipment	652,000
Less: Accumulated Depreciation	225,000
Total property, plant and equipment		1,787,000
Intangible assets
Patents	167,000
Franchisee	55,000
Total Intangible assets		222,000
Total Assets		3,166,000
LIABILITIES AND STOCKHOLDERS EQUITY
Liabilities :
Current Liabilities
Accounts Payable	204,000
Dividend payable	25,000
Current Income tax payable	55,000
Current Interest Payable	31,000
Unearned Revenue (75,000*80%)	60,000
Total Current Liabilities		375,000
Long term liabilities
Notes payable	330,000
Unearned Revenue (75,000*20%)	15,000
Total long term liabilities		345,000
Total Liabilities		720,000
Total Stockholders' Equity
Common Stock , no par value , 1,200,000 shares authorized
650,000 shares issued and outstanding	2,060,000
Retained Earnings	386,000
Total shareholders' equity		2,446,000
Total Liabilities and stockholders’ equity		3,166,000
2. Loan to employees is current asset as it is due on June 30, 2017
3. Note Receivable for 1 year is short term and rest is long term.
5. 80% of deferred revenue is current liabilities and rest is long term
6. Notes payable due in 2018 and 2019 both is long term.