Question

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

Account Title	Debits			Credits
Cash		73,000
Short-term investments		188,000
Accounts receivable		129,000
Long-term investments		38,000
Inventories		218,000
Loans to employees		43,000
Prepaid expenses (for 2019)		19,000
Land		283,000
Building		1,580,000
Machinery and equipment		640,000
Patent		155,000
Franchise		43,000
Note receivable		265,000
Interest receivable		15,000
Accumulated depreciation—building				623,000
Accumulated depreciation—equipment				213,000
Accounts payable				192,000
Dividends payable (payable on 1/16/19)				13,000
Interest payable				19,000
Taxes payable				43,000
Deferred revenue				63,000
Notes payable				306,000
Allowance for uncollectible accounts				11,000
Common stock				2,012,000
Retained earnings				194,000
Totals		3,689,000		3,689,000

Additional information:

The common stock represents 1.3 million shares of no par stock authorized, 530,000 shares issued and outstanding.

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

The note receivable is due in installments of $53,000, 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 $53,000 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. Seventy percent of these contracts expire in 2019, the remainder in 2020.

Notes payable consists of two notes, one for $103,000 due on January 15, 2020, and another for $203,000 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

Vosburgh inc
Balance sheet (classified)
Assets:
Current assets;
Cash and cash equivalent (73000+53,000)		$126,000
Marketable securities(188000-53000)		$135,000
Account receivable (net){129,000-11000(allowance)}		$118,000
Loans to employees		$43,000
Interest receivable		$15,000
Notes receivable-current portion		$53,000
Inventory		$218,000
Prepaid expenses		$19,000
Total current assets		$727,000
Investments:
Marketable securities	$38,000
Notes receivable(265000-53000)	$212,000
Total investments		$250,000
Property plant and equipment:
Land	$283,000
Building	$1,580,000
Machinery and equipment	$640,000
Total	$2,503,000
Less Accumulated epriciation	($836,000)
Total property, plant and equipment		$1,667,000
Intangible assets:
Patent	155000
Franchise	$43,000
Total intangible assets		$198,000
Total assets		2,842,000
Liabilities and Shareholders equity:
Current liabilities:
Account payable		$192,000
Dividend payable		$13,000
Interest payable		$19,000
Taxes payable		$43,000
Unearned revenue(70%×63000)		$44,100
Total current liabilities		$311,100
Long term liabilities:
Notes payable	$306,000
Unearned revenue (63000×30%)	$18,900
Total long term liabilities		$324,900
Shareholders equity:
Common stock, no par value:1,100,000 shares authorized,510,000 shares issued and outstanding	$2,012,000
Retained earnings	$194,000
Total stock holders equity		$2,206,000
Total liabilities and Shareholders equity		$2,842,000