P 3–6 Balance sheet preparation; disclosures • LO3–2 through LO3–4 The following is th… 1 answer below »

P 3–6 Balance sheet preparation; disclosures

• LO3–2 through LO3–4

The following is the ending balances of accounts at December 31, 2016 for the Vosburgh Electronics Corporation.

Account Title

Debits

Credits

Cash

67,000

Short-term investments

182,000

Accounts receivable

123,000

Long-term investments

35,000

Inventories

215,000

Loans to employees

40,000

Prepaid expenses (for 2017)

16,000

Land

280,000

Building

1,550,000

Machinery and equipment

637,000

Patent

152,000

Franchise

40,000

Note receivable

250,000

Interest receivable

12,000

Accumulated depreciation—building

620,000

Accumulated depreciation—equipment

210,000

Accounts payable

189,000

Dividends payable (payable on 1/16/17)

10,000

Interest payable

16,000

Taxes payable

40,000

Deferred revenue

60,000

Notes payable

300,000

Allowance for uncollectible accounts

8,000

Common stock

2,000,000

Retained earnings

146,000

Totals

3,599,000

3,599,000 Additional Information:

Page 158

The common stock represents 1 million shares of no par stock authorized, 500,000 shares issued and outstanding.

The loans to employees are due on June 30, 2017.

The note receivable is due in installments of $50,000, payable on each September 30. Interest is payable annually.

Short-term investments consist of marketable equity securities that the company plans to sell in 2017 and $50,000 in treasury bills purchased on December 15 of the current year that mature on February 15, 2017. Long-term investments consist of marketable equity securities that the company does not plan to sell in the next year.

Deferred revenue represents customer payments for extended service contracts. Eighty percent of these contracts expire in 2017, the remainder in 2018.

Notes payable consists of two notes, one for $100,000 due on January 15, 2018, and another for $200,000 due on June 30, 2019.

 

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