The following is the ending balances of accounts at December 31, 2018 for the Valley Pump Corporation.
Account Title Debits Credits
Cash 35,000
Accounts receivable 76,000
Inventories 101,000
Interest payable 20,000
Marketable securities 64,000
Land 140,000
Buildings 350,000
Accumulated depreciation—buildings 110,000
Equipment 95,000
Accumulated depreciation—equipment 35,000
Copyright (net of amortization) 22,000
Prepaid expenses (next 12 months) 42,000
Accounts payable 75,000
Deferred revenues (next 12 months) 30,000
Notes payable 300,000
Allowance for uncollectible accounts 5,000
Common stock 300,000
Retained earnings 50,000
Totals 925,000 925,000
Additional information: The $140,000 balance in the land account consists of $110,000 for the cost of land where the plant and office buildings are located. The remaining $30,000 represents the cost of land being held for speculation. The $64,000 in the marketable securities account represents an investment in the common stock of another corporation. Valley intends to sell one-half of the stock within the next year. The notes payable account consists of a $120,000 note due in six months and a $180,000 note due in three annual installments of $60,000 each, with the first payment due in August of 2019.
Required:
Prepare a classified balance sheet for the Valley Pump Corporation at December.
