Question

The following is the ending balances of accounts at December 31, 2021, for the Vosburgh Electronics Corporation.

Account Title	Debits			Credits
Cash		91,000
Short-term investments		206,000
Accounts receivable		147,000
Long-term investments		47,000
Inventory		227,000
Receivables from employees		52,000
Prepaid expenses (for 2022)		28,000
Land		292,000
Building		1,670,000
Equipment		649,000
Patent (net)		164,000
Franchise (net)		52,000
Notes receivable		310,000
Interest receivable		24,000
Accumulated depreciation—building				632,000
Accumulated depreciation—equipment				222,000
Accounts payable				201,000
Dividends payable (payable on 1/16/2022)				22,000
Interest payable				28,000
Income Taxes payable				52,000
Deferred revenue				72,000
Notes payable				324,000
Allowance for uncollectible accounts				20,000
Common stock				2,048,000
Retained earnings				338,000
Totals		3,959,000		3,959,000

Additional information:

1. The common stock represents 1.1 million shares of no par stock authorized, 620,000 shares issued and outstanding.
2. The receivables from employees are due on June 30, 2022.
3. The notes receivable are due in installments of $62,000, payable on each September 30. Interest is payable annually.
4. Short-term investments consist of securities that the company plans to sell in 2022 and $62,000 in treasury bills purchased on December 15 of the current year that mature on February 15, 2022. Long-term investments consist of securities that the company does not plan to sell in the next year.
5. Deferred revenue represents payments from customer for extended service contracts. Eighty percent of these contracts expire in 2022, the remainder in 2023.
6. Notes payable consists of two notes, one for $112,000 due on January 15, 2023, and another for $212,000 due on June 30, 2024.

Required:
Prepare a classified balance sheet for Vosburgh at December 31, 2021. (Amounts to be deducted should be indicated by a minus sign.)

Answer 1

Vosburgh Electronics Corporation BALANCE SHEET AT December 31 ,2021.
ASSETS
Current asset
Cash and cash equivalent (i)		153000
Accounts receivable (gross)	147000
Less:Allowance for uncollectible account	-20000
Accounts receivable (net)		127000
Inventory		227000
Prepaid expense		28000
Short term investment (ii)		144000
Note receivable (current portion)		62000
Interest receivable		24000
Receivable from employees		52000
Total current asset			817000
Investment
Long-term investments		47000
Note receivable -Long term (iii)		248000
Total investment			295000
Property,Plant and equipment
Land		292000
Building	1670000
Less:Accumulated depreciation-building	(-632000)	1038000
Equipment	649000
Less:Accumulated depreciation-building	-222000	427000
Total Property,Plant and equipment			1757000
Intangible asset
Patent		164000
Franchise		52000
Total Intangible asset			216000
Total asset			3085000
LIABILITIES AND STOCKHOLDERS EQUITY
Current liability
Accounts payable		201000
Dividend payable		22000
Interest payable		28000
Income taxes payable		52000
Deferred revenue (current ) (iv)		57600
Total current liabilities			360600
Non current liabilities
Note payable		324000
Deferred revenue (non current)		14400
Total non current liabilities			338400
Total liabilities			699000
Stockholders equity
common stock		2048000
Retained earning		338000
Total stockholders equity			2386000
Total liabilities and stockholders equity			3085000

Working :

(i)Out of short term investment ,62000 is in treasury bill which is considered as cash equivalent.so Cash and cash equivalent = cash +cash equivalent

= 91000 +62000

= 153000

(ii)Short term investment = (206000-62000cash equivalent)= 144000

(iii)Note receivable -Long term = 310000-62000=248000

(iv)Deferred revenue (current ) = 72000*80%= 57600

(v)Deferred revenue (non-current ) = 72000-57600= 14400