Question

1.

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

Account Title	Debits			Credits
Cash		87,000
Short-term investments		202,000
Accounts receivable		143,000
Long-term investments		45,000
Inventory		225,000
Receivables from employees		50,000
Prepaid expenses (for 2022)		26,000
Land		290,000
Building		1,650,000
Equipment		647,000
Patent (net)		162,000
Franchise (net)		50,000
Notes receivable		300,000
Interest receivable		22,000
Accumulated depreciation—building				630,000
Accumulated depreciation—equipment				220,000
Accounts payable				199,000
Dividends payable (payable on 1/16/2022)				20,000
Interest payable				26,000
Income Taxes payable				50,000
Deferred revenue				70,000
Notes payable				320,000
Allowance for uncollectible accounts				18,000
Common stock				2,040,000
Retained earnings				306,000
Totals		3,899,000		3,899,000

Additional information:

1. The common stock represents 1.4 million shares of no par stock authorized, 600,000 shares issued and outstanding.
2. The receivables from employees are due on June 30, 2022.
3. The notes receivable are due in installments of $60,000, 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 $60,000 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. Seventy five percent of these contracts expire in 2022, the remainder in 2023.
6. Notes payable consists of two notes, one for $110,000 due on January 15, 2023, and another for $210,000 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