Question

The following is the ending balances of accounts at December 31, 2021, for the Vosburgh Electronics Corporation.

Account Title	Debits			Credits
Cash		83,000
Short-term investments		198,000
Accounts receivable		139,000
Long-term investments		43,000
Inventory		223,000
Receivables from employees		48,000
Prepaid expenses (for 2022)		24,000
Land		288,000
Building		1,630,000
Equipment		645,000
Patent (net)		160,000
Franchise (net)		48,000
Notes receivable		290,000
Interest receivable		20,000
Accumulated depreciation—building				628,000
Accumulated depreciation—equipment				218,000
Accounts payable				197,000
Dividends payable (payable on 1/16/2022)				18,000
Interest payable				24,000
Income Taxes payable				48,000
Deferred revenue				68,000
Notes payable				316,000
Allowance for uncollectible accounts				16,000
Common stock				2,032,000
Retained earnings				274,000
Totals		3,839,000		3,839,000

Additional information:

1. The common stock represents 1.2 million shares of no par stock authorized, 580,000 shares issued and outstanding.
2. The receivables from employees are due on June 30, 2022.
3. The notes receivable are due in installments of $58,000, payable on each September 30. Interest is payable annually.
4. Short-term investments consist of securities that the company plans to sell in 2022 and $58,000 in treasury bills purchased on December 15 of the current year that mature on February 15, 2022. Long-term investments consist of securities that the company does not plan to sell in the next year.
5. Deferred revenue represents payments from customer for extended service contracts. Seventy percent of these contracts expire in 2022, the remainder in 2023.
6. Notes payable consists of two notes, one for $108,000 due on January 15, 2023, and another for $208,000 due on June 30, 2024.

Required:
Prepare a classified balance sheet for Vosburgh at December 31, 2021. (Amounts to be deducted should be indicated by a minus sign.)

VOSBURGH ELECTRONICS CORPORATION Balance Sheet At December 31, 2021 Assets Current assets Net accounts receivable Total current assets Investments: Total investments Property, plant, and equipment: Net property, plant, and equipment Intangible assets: Total intangible assets Total assets Liabilities and Shareholders' Fouity

Answer 1

Current assets:
Cash and cash equivalents ($83,000+$58,000)		$       141,000
Marketable securities ($198,000-$58,000)		$       140,000
Accounts receivable (net) $139,000-$16,000)		$       123,000
Loans to employees		$         48,000
Interest receivable		$         20,000
Note receivable—current portion		$         58,000
Inventories		$       223,000
Prepaid expenses		$         24,000
Total current assets		$ 777,000
Investments:
Marketable securities	$         43,000
Note receivable ($290,000-$58,000)	$       232,000
Total investments		$ 275,000
Property, plant, and equipment:
Land	$       288,000
Buildings	$   1,630,000
Machinery and equipment	$       645,000
	$   2,563,000
Less: Accumulated depreciation	$     -846,000
Net property, plant, and equipment		$   1,717,000
Intangible assets:
Patent	$       160,000
Franchise	$         48,000
Total intangible assets		$       208,000
Total assets		$ 2,977,000
Liabilities and Shareholders' Equity
Current liabilities:
Accounts payable		$       197,000
Dividends payable		$         18,000
Interest payable		$         24,000
Taxes payable		$         48,000
Deferred revenue ($68,000*70%)		$         47,600
Total current liabilities		$       334,600
Long-term liabilities:
Notes payable	$       316,000
Deferred revenue ($68,000*30%)	$         20,400
Total long-term liabilities		$       336,400
Shareholders’ equity:
Common stock, no par value; 1,200,000 shares
authorized; 580,000 shares issued and outstanding	$   2,032,000
Retained earnings	$       274,000
Total shareholders’ equity		$   2,306,000
Total liabilities and shareholders’ equity		$   2,977,000