The following is the ending balances of accounts at December 31, 2018 for the Vo
ID: 2339924 • Letter: T
Question
The following is the ending balances of accounts at December 31, 2018 for the Vosburgh Electronics Corporation.
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.)
Explanation / Answer
Answer:
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
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
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