Question

The following are the ending balances of accounts at December 31, 2021, for the Valley Pump Corporation. Credits Debits $32,000 70,000 95,000 $ 17,000 58,000 134,000 335,000 197,000 89,000 Account Title Cash Accounts receivable Inventory Interest payable Investment in equity securities Land Buildings Accumulated depreciation-buildings Equipment Accumulated depreciation-equipment Copyright (net) Prepaid expenses (next 12 months) Accounts payable Deferred revenue (next 12 months) Notes payable Allowance for uncollectible accounts Common stock Retained earnings Totals 32,000 19,000 39,000 72,000 27,000 285,000 7,000 270,000 54,000 $871,000 $871,000

Answer 1

Answer:

Valley Pump Corporation Balance Sheet At December 31, 2021
Particulars	Amount ($)	Amount ($)
Assets:
Current Assets:
Cash	32000
Marketable securities (58000*1/2)	29000
Accounts receivable	70000
Less: Allow for uncollectable accounts	-7000
Inventory	95000
Prepaid exepenses	39000
Total current assets		258000
Investments
Land	27000
Marketable securities (58000*1/2)	29000
Total Investments		56000
Property plant and equipment
Land	107000
Buildings	335000
Less: Accumulated depreciation - buildings	-107000
Equipment	89000
Less: Accumulated depreciation - Equipment	-32000
Net Property plant and Equipment		392000
Intangibles
Copy rights		19000
Total Assets		725000
Liabilities
Current liabilities
Accounts payable	72000
Interest payable	17000
Deferred revenue	27000
Notes payable (114000+57000)	171000
Total current liabilities		287000
Long term liabilities
Notes payable long term	114000
Total long term liablities		114000
Total Liabilities		401000
Owners Equity
Common Stock	270000
Retained earnings	54000
Total owners equity		324000
Total liabilities and owners equity		725000