Homework SourseThe following is the ending balances of accounts at December
The following is the ending balances of accounts at December 31, 2016, for the Vosburgh Electronics Corporation.
The common stock represents 1.6 million shares of no par stock authorized, 690,000 shares issued and outstanding.
The note receivable is due in installments of $69,000, payable on each September 30. Interest is payable annually.
Short-term investments consist of marketable equity securities that the company plans to sell in 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.
Deferred revenue represents customer payments for extended service contracts. Eighty percent of these contracts expire in 2017, the remainder in 2018.
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.
Prepare a classified balance sheet for Vosburgh at December 31, 2016. (Amounts to be deducted should be indicated by a minus sign.)
| The following is the ending balances of accounts at December 31, 2016, for the Vosburgh Electronics Corporation. |
Solution
Please look at adjustments below:
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| Balance sheet | ||
| Assets | ||
| Current Assets: | ||
| Cash and cash equivalents | $ 174,000 | |
| Marketable securities | $ 151,000 | |
| Accounts receivable (net) | $ 134,000 | |
| Loans to employees | $ 59,000 | |
| Interest receivable | $ 31,000 | |
| Note receivable—current portion | $ 69,000 | |
| Inventories | $ 234,000 | |
| Prepaid expenses | $ 35,000 | |
| Total current assets | $ 887,000 | |
| Investments: | ||
| Marketable securities | $ 54,000 | |
| Note receivable | $ 276,000 | |
| Total investments | $ 330,000 | |
| Property, plant, and equipment: | ||
| Land | $ 299,000 | |
| Buildings | $ 1,740,000 | |
| Machinery and equipment | $ 656,000 | |
| Less: Accumulated depreciation | $ (868,000) | |
| Net property, plant, and equipment | $ 1,827,000 | |
| Intangible assets: | ||
| Patent | $ 171,000 | |
| Copyright | $ 59,000 | |
| Total intangible assets | $ 230,000 | |
| Total assets | $ 3,274,000 | |
| Liabilities & Stockholder\'s Equity | ||
| Current liabilities: | ||
| Accounts Payable | $ 208,000 | |
| Notes payable | $ 119,000 | |
| Interest Payable | $ 35,000 | |
| Taxes payable | $ 59,000 | |
| Dividend payable | $ 29,000 | |
| Deferred Revenue | $ 63,200 | |
| Total current liabilities | $ 513,200 | |
| Long-term liabilities: | ||
| Notes payable | $ 219,000 | |
| Deferred Revenue | $ 15,800 | |
| Total long-term liabilities | $ 234,800 | |
| Stockholder\'s Equity | ||
| Common stock, no par, 1600000 shares authorized,690,000 shares issued and outstanding | $ 2,076,000 | |
| Retained Earnings | $ 450,000 | |
| Total StockHolder\'s Equty | $ 2,526,000 | |
| Total Liabilities & Stockholder\'s Equity | $ 3,274,000 |
