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Sagot :
Answer and Explanation:
The preparation of the classified balance sheet is presented below:
Valley Pump Corporation
Balance sheet
December 31, 2018
Assets
Current assets
Cash $30,000
Marketable securities $27,000
Account receivable $61,000
Inventory $91,000
Prepaid expense $37,000
Investments
Marketable securities $27,000
Land $25,000 $52,000
Property, plant & equipment
Land $105,000
Buildings $325,000
Equipment $85,000
Less:
Accumulated depreciation -$135,000
Net property, plant & equipment $380,000
Intangibles
Copyright $17,000
Total assets $695,000
Liabilities & shareholder equity
Current liabilities
Account payable $70,000
Interest payable $15,000
Unearned revenue $25,000
Note payable $110,000
Current maturities $55,000
Total current liabilities $275,000
Long term liabilities
Note payable $110,000
Shareholder equity
Common stock $250,000
Retained earnings $60,000
Total shareholder equity $310,000
Total liabilities & shareholder equity $695,000
Working notes
Accumulated depreciation = building + equipment
= $105,000 + $60,000
= $695,000
The note payable is
= $55,000 × 2
= $110,000
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