Question

The following is the ending balances of accounts at December 31, 2018 for the Vosburgh Electronics Corporation.

Account Title	Debits			Credits
Cash		77,000
Short-term investments		192,000
Accounts receivable		133,000
Long-term investments		40,000
Inventories		220,000
Loans to employees		45,000
Prepaid expenses (for 2019)		21,000
Land		285,000
Building		1,600,000
Machinery and equipment		642,000
Patent		157,000
Franchise		45,000
Note receivable		275,000
Interest receivable		17,000
Accumulated depreciation—building				625,000
Accumulated depreciation—equipment				215,000
Accounts payable				194,000
Dividends payable (payable on 1/16/19)				15,000
Interest payable				21,000
Taxes payable				45,000
Deferred revenue				65,000
Notes payable				310,000
Allowance for uncollectible accounts				13,000
Common stock				2,020,000
Retained earnings				226,000
Totals		3,749,000		3,749,000

Additional information:

The common stock represents 1.5 million shares of no par stock authorized, 550,000 shares issued and outstanding.

The loans to employees are due on June 30, 2019.

The note receivable is due in installments of $55,000, payable on each September 30. Interest is payable annually.

Short-term investments consist of marketable equity securities that the company plans to sell in 2019 and $55,000 in treasury bills purchased on December 15 of the current year that mature on February 15, 2019. Long-term investments consist of marketable equity securities that the company does not plan to sell in the next year.

Deferred revenue represents customer payments for extended service contracts. Eighty percent of these contracts expire in 2019, the remainder in 2020.

Notes payable consists of two notes, one for $105,000 due on January 15, 2020, and another for $205,000 due on June 30, 2021.

Required:
Prepare a classified balance sheet for Vosburgh at December 31, 2018. (Amounts to be deducted should be indicated by a minus sign.)

Answer 1

* As per the information 55000 has been moved to current asset and balance 220,000 has been shown as long term assets.

** Interest on note payable is due annually and hence classified as short term liabilities.

*** Deferred revenue has been classified under short term and long term in the ratio of 8:2 respectively.

**Notes payable is due only after one year and hence classified as long term.