The following is the ending balances of accounts at December 31, 2016, for the V
ID: 2416277 • Letter: T
Question
The following is the ending balances of accounts at December 31, 2016, for the Vosburgh Electronics Corporation.
Additional information:
1. The common stock represents 1.6 million shares of no par stock authorized, 690,000 shares issued and outstanding.
2. The loans to employees are due on June 30, 2017.
3. The note receivable is due in installments of $69,000, 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 2017 and $69,000 in treasury bills purchased on December 15 of the current year that mature on February 15, 2017. 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. Eighty percent of these contracts expire in 2017, the remainder in 2018.
6. Notes payable consists of two notes, one for $119,000 due on January 15, 2018, and another for $219,000 due on June 30, 2019.
Required: Prepare a classified balance sheet for Vosburgh at December 31, 2016. (Amounts to be deducted should be indicated by a minus sign.)
Explanation / Answer
ASSETS Current assets Cash $105,000 Short term investment 220,000 Accounts receivable 161,000 Less: allowances 27,000 134,000 Inventories 234,000 Loan to employees 59,000 Prepaid expenses 35,000 Other current assets 59,000 Notes receivable 345,000 Interest receivable 31,000 Total current assets 1,222,000 Fixed assets Furniture and fixtures Land 299,000 Building 1,740,000 Less: Accumulated Depreciation 639,000 1,101,000 Machinery 656,000 Less: Accumulated Depreciation 229000 427,000 Long term investment 54,000 Patent 171,000 Total non-current assets 2,052,000 Total assets $3,274,000 LIABILITIES AND EQUITY Current liabilities Accounts payable 208000 Dividend payable $29,000 Interest payable 35,000 taxes payable 59,000 Deffered revenue 63,200 Notes payable 119,000 Total current liabilities 513,200 Long-term liabilities Deffered revenue 15,800 Notes payable 219,000 Total non-current liabilities 748,000 Total liabilities Shareholders’ Equity Commons Stock $2,076,000 Additional paid-in capital Retained earnings 450,000 Total equity 2,526,000 Total liabilities and equity $3,274,000
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