The following is the ending balances of accounts at December 31, 2018 for the Vo
ID: 2334151 • Letter: T
Question
The following is the ending balances of accounts at December 31, 2018 for the Vosburgh Electronics Corporation. Account Title Cash Short-term investments Accounts receivable Long-term investments Inventories Loans to employees Prepaid expenses (for 2819) Land Building Machinery and equipment Patent Franchise Note receivable Interest receivable Accumulated depreciation-building Accumulated depreciation-equipment Accounts payable Dividends payable (payable on 1/16/19) Interest payable Taxes payable Deferred revenue Notes payable Allowance for uncollectible accounts Common stock Retained earning.s Totals Debits 81,89e 196,890 137,898 42.80e 222,880 47,89e 23.80e 287,890 Credits 1,628, e0e 644,89e 159,898 47,89e 285,898 19,890 627. 800 217,e30 196,89 17,898 23.80e 47,89e 67,89e 314,890 15,80 2,828,89e 258,80e 3,809,89e 3,809,e9e Addltlonel Informetlon: 1. The common stock represents 1.1 million shares of no par stock authorized, 570,000 shares issued and outstanding 2. The loans to employees are due on June 30, 2019. 3. The note receivable is due in installments of $57,000, payable on each September 30. Interest is payable annually. 4. Short-term investments consist of marketable equity securities that the company plans to sell in 2019 and $57,000 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 in 2019, the remainder in 2020 2021 5. Deferred revenue represents customer payments for extended service contracts. Seventy five percent of these contracts expire 6. Notes payable consists of two notes, one for $107000 due on January 15, 2020, and another for $207,000 due on June 30 Requlrec Prepare a classified balance sheet for Vosburgh at December 31, 2018. (Amounts to be deducted should be Indlcated by a mlnus slgn.)Explanation / Answer
Answer:
VOSBURGH ELECTRONICS CORPORATION
Balance Sheet
At December 31, 2018
Assets
Current assets:
Cash and cash equivalents (81000+57000)
138,000
Short term investment (196000-57000)
139,000
Accounts receivable (net) (137000-15000)
122,000
Loans to employees
47,000
Interest receivable
19,000
Note receivable—current portion
57,000
Inventories
222,000
Prepaid expenses
23,000
Total current assets
767,000
Investments:
Long term investment
42,000
Note receivable
228,000
Total investments
270,000
Property, plant, and equipment:
Land
287,000
Buildings
1,620,000
Machinery and equipment
644,000
2,551,000
Less: Accumulated depreciation
(844,000)
Net property, plant, and equipment
1,707,000
Intangible assets:
Patent
159,000
Franchise
47,000
Total intangible assets
206,000
Total assets
2,950,000
Liabilities and Shareholders' Equity
Current liabilities:
Accounts payable
196,000
Dividends payable
17,000
Interest payable
23,000
Taxes payable
47,000
Deferred revenue (67000*75%)
50,250
Total current liabilities
333,250
Long-term liabilities:
Notes payable
314,000
Deferred revenue (67000*25%)
16,750
Total long-term liabilities
330,750
Shareholders’ equity:
Common stock, no par value; 1,010,000 shares
2,028,000
authorized; 570,000 shares issued and outstanding
Retained earnings
258,000
Total shareholders’ equity
2,286,000
Total liabilities and shareholders’ equity
2,950,000
VOSBURGH ELECTRONICS CORPORATION
Balance Sheet
At December 31, 2018
Assets
Current assets:
Cash and cash equivalents (81000+57000)
138,000
Short term investment (196000-57000)
139,000
Accounts receivable (net) (137000-15000)
122,000
Loans to employees
47,000
Interest receivable
19,000
Note receivable—current portion
57,000
Inventories
222,000
Prepaid expenses
23,000
Total current assets
767,000
Investments:
Long term investment
42,000
Note receivable
228,000
Total investments
270,000
Property, plant, and equipment:
Land
287,000
Buildings
1,620,000
Machinery and equipment
644,000
2,551,000
Less: Accumulated depreciation
(844,000)
Net property, plant, and equipment
1,707,000
Intangible assets:
Patent
159,000
Franchise
47,000
Total intangible assets
206,000
Total assets
2,950,000
Liabilities and Shareholders' Equity
Current liabilities:
Accounts payable
196,000
Dividends payable
17,000
Interest payable
23,000
Taxes payable
47,000
Deferred revenue (67000*75%)
50,250
Total current liabilities
333,250
Long-term liabilities:
Notes payable
314,000
Deferred revenue (67000*25%)
16,750
Total long-term liabilities
330,750
Shareholders’ equity:
Common stock, no par value; 1,010,000 shares
2,028,000
authorized; 570,000 shares issued and outstanding
Retained earnings
258,000
Total shareholders’ equity
2,286,000
Total liabilities and shareholders’ equity
2,950,000
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