Question

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

Account Title	Debits			Credits
Cash		105,000
Short-term investments		220,000
Accounts receivable		161,000
Long-term investments		54,000
Inventory		234,000
Receivables from employees		59,000
Prepaid expenses (for 2022)		35,000
Land		299,000
Building		1,740,000
Equipment		656,000
Patent (net)		171,000
Franchise (net)		59,000
Notes receivable		345,000
Interest receivable		31,000
Accumulated depreciation—building				639,000
Accumulated depreciation—equipment				229,000
Accounts payable				208,000
Dividends payable (payable on 1/16/2022)				29,000
Interest payable				35,000
Income Taxes payable				59,000
Deferred revenue				79,000
Notes payable				338,000
Allowance for uncollectible accounts				27,000
Common stock				2,076,000
Retained earnings				450,000
Totals		4,169,000		4,169,000

1. The common stock represents 1.6 million shares of no par stock authorized, 690,000 shares issued and outstanding.
2. The receivables from employees are due on June 30, 2022.
3. The notes receivable are due in installments of $69,000, 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 $69,000 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 $119,000 due on January 15, 2023, and another for $219,000 due on June 30, 2024.

Required:
Prepare a classified balance sheet for Vosburgh at December 31, 2021.

Answer 1

Prepare balance sheet as follows:

V Co
Balance Sheet
Assets:
Current assets
Cash (105000+69000)	174000
Marketable securities (220000 - 69000)	151000
Receivable from employees	59000
Accounts receivable	161000
Less: Allowance for doubtful accounts	-27000
Inventories	234000
Notes receivable (CY)	69000
Interest receivables	31000
Prepaid expenses	35000
Total current assets		887000
Property plant and equipment:
Investments:
Notes receivable (CY)(345000-69000)	276000
Marketable securities	54000
Land	299000
Building	1740000
Less: Accumulated depreciation	-639000
Equipment	656000
Less: Accumulated depreciation	-229000
Intangibles:
Patent	171000
Franchise	59000
Total property plant and equipment		2387000
Total assets		3274000
Liabilities:
Current liabilities:
Accounts payable	208000
Dividend payable	29000
Interest payable	35000
Taxes payable	59000
Unearned revenue (79000*0.20)	15800
Total current liabilities		346800
Long term liabilities:
Notes payable	338000
Unearned revenue (79000*0.80)	63200
Total long term liabilities		401200
Total liabilities		748000
Shareholder's equity
common stock	2076000
Retained earnings	450000
Total stockholder's equity		2526000
Total liabilities & stockholder's equity		3274000