Question

1. The following are the ending balances of accounts at December 31, 2021, for the Valley Pump Corporation.
   

   Account Title		Debits			Credits
   Cash	$	42,000
   Accounts receivable		90,000
   Inventory		115,000
   Interest payable				$	27,000
   Investment in equity securities		78,000
   Land		154,000
   Buildings		385,000
   Accumulated depreciation—buildings					117,000
   Equipment		109,000
   Accumulated depreciation—equipment					42,000
   Copyright (net)		29,000
   Prepaid expenses (next 12 months)		49,000
   Accounts payable					82,000
   Deferred revenue (next 12 months)					37,000
   Notes payable					335,000
   Allowance for uncollectible accounts					7,000
   Common stock					370,000
   Retained earnings					34,000
   Totals	$	1,051,000		$	1,051,000

   1. The $154,000 balance in the land account consists of $117,000 for the cost of land where the plant and office buildings are located. The remaining $37,000 represents the cost of land being held for speculation.
2. The $78,000 balance in the investment in equity 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 $134,000 note due in six months and a $201,000 note due in three annual installments of $67,000 each, with the first payment due in August of 2022.

Required:
Prepare a classified balance sheet for the Valley Pump Corporation at December 31, 2021. Use the additional information to help determine appropriate classifications and account balances. (Amounts to be deducted should be indicated by a minus sign.)

Answer 1