Question

Problem 3-6 (Algo) Balance sheet preparation; disclosures (LO3-2, 3-3, 3-4) The following is the ending balances of accounts at December 31 2021. for the Vosburgh Electronics Corporation Credits Debits 85. 20. 141. Account Title Cash Short-term investments Accounts receivable Long-term investments Inventory Receivables from employees Prepaid expenses (for 2022 Land Building Equipment Patent (net) Franchise (net) Notes receivable Interest receivable Accumulated depreciation-building Accumulated depreciation equipment Accounts payable Dividends payable (payable on 1/16/2022) Interest payable Income Taxes payable Deferred revenue Notes payable Allowance for uncollectible accounts Common stock Retained earnings Totals 224, 49.00 25,00 289, eee 1,640,00 646,00 161, 49,900 295,000 21.00 629. 219, 198.000 19. 59.000 318.000 17. 2,036, e 200.00 3,869,000 3,869,000

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Answer 1

Answer: With the given information, the Balance Sheet of VOSBURGH ELECTRONICS CORPORATION as at December 31, 2021 is given below:

VOSBURGH ELECTRONICS CORPORATION
Balance Sheet
At December 31, 2021
Assets
Current Assets:
Cash and cash equivalent ($85,000 (Cash) +$59,000 (The note receivable)		$1,44,000
Marketable securities (Short-term investments-treasury bills purchased ) ($200,000-$59,000)		$1,41,000
Accounts receivables	$1,41,000
Less: Allowance for uncollectible accounts	$17,000	$1,24,000
Receivable from employees		$49,000
Interest receivables		$21,000
Note receivable		$59,000
Inventory		$2,24,000
Prepaid expenses		$25,000
Total Current Assets (A)		$7,87,000
Non-Current Assets:
Long-term investment		$44,000
Note receivables ($2,95,000-$59,000)		$2,36,000
Land		$2,89,000
Building	$16,40,000
Less: Accumulated Depreciation-Building	$6,29,000	$10,11,000
Equipment	$6,46,000
Less: Accumulated Depreciation-Equipment	$2,19,000	$4,27,000
Patent		$1,61,000
Franchise		$49,000
Total Non-Current Assets (B)		$22,17,000
Total Assets (A+B)		$30,04,000
Liabilities and Share holder's Equity
Current Liabilities:
Account payable		$1,98,000
Dividend payable		$19,000
Interest payable		$25,000
Taxes payable		$49,000
Revenue not earned {$69,000 X 25% (As per sl. no. 5 of additional information)}		$17,250
Total current liabilities (A)		$3,08,250
Non-current liabilities:
Notes payable	$3,18,000
Add: Revenue not earned {$69,000 X 75% (As per sl. no. 5 of additional information)}	$51,750
Total Non-current liabilities (B)		$3,69,750
Share holder's Equity:
Common stock	$20,36,000
Retained earnings	$2,90,000
Total Share holder's Equity (C)		$23,26,000
Total Liabilities and Share holder's Equity (A+B+C)		$30,04,000