The following is the ending balances of accounts at December 31, 2018 for the Vo

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 2019) 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 earnings Debits 85,000 200,000 141,000 44,000 224,000 49,000 25,000 289,000 Credits 1,640,000 646,000 161,000 49,000 295,000 21,000 629,000 219,000 198,000 19,000 25,000 49,000 69,000 318,000 17,000 2,036,000 290,000 3,869,000 Totals 3, 869, 000 Additional information: 1. The common stock represents 1.3 million shares of no par stock authorized, 590,000 shares issued and outstanding 2. The loans to employees are due on June 30, 2019 3. The note receivable is due in installments of $59,000, 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 $59,000 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. 5. Deferred revenue represents customer payments for extended service contracts. Seventy five percent of these contracts expire in

Explanation / Answer

Vosburgh Electronics Corporation Balance Sheet Assets Current Assets Cash and Cash Equivalents $144,000 Marketable Securities $141,000 Accounts Recievable (Net) $124,000 Loan to Employees $49,000 Interest Recievable $21,000 Note Recievable-Current portion $59,000 Inventories $224,000 Prepaid Expenses $25,000 Total Current Assets $787,000 Investments Marketable Securities $44,000 Note Recievable $236,000 Total Investments $280,000 Plant Property and equipment Land $289,000 Building $1,640,000 Machinery and Equipment $646,000 $2,575,000 Less: Acc Dep Building $629,000 Less: Acc Dep Equipment $219,000 Accumulated Dep $848,000 Net Plant Property and equipment $1,727,000 Intangible Assets Patent $161,000 Franchisee $49,000 Total Intangible Assets $210,000 Total Assets $3,004,000 Liabilities and Shareholder's Fund Current Liabilities Accounts Payable $198,000 Dividend Payable $19,000 Interest Payable $25,000 Taxes Payable $49,000 Unearned Revenue (75% of 69000) $51,750 Total Current Liabilities $342,750 Long Term Liabilities Notes Payable $318,000 Unearned Revenue (25% of 69000) $17,250 Total Long Term Liabilities $335,250 Shareholder's Equity Common Stock no par value 1.3 Authorized 590000 share issued and outstanding $2,036,000 Retained Earning $290,000 Total Shareholder's equity $2,326,000 Total Liabilities and Shareholder's Fund $3,004,000

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