Question

The $134,000 balance in the land account consists of $107,000 for the cost of land where the plant and office buildings are located. The remaining $27,000 represents the cost of land being held for speculation. The $58,000 balance in the investment in equity 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 $114,000 note due in six months and a $171,000 note due in three annual installments of $57,000 each, with the first payment due in August of 2022. Prepare a classified balance sheet for the Valley Pump Corporation at December 31, 2016. (Amounts to be deducted should be indicated by a minus sign.)

Answer 1

Answer:

Account of Current Assets , the criteria is to have a liquidity speed less of one year

Short Term Investment Stock - The total stock to be sell next year.

Account of Non Current Assets , the criteria is to have a liquidity speed more than one year and are known as fixed assets

Long Term Investment Stock - The half of the investment in the common stock of another corporation

Long Term Investment Land - Total Land being held for speculation

Land - The total land where the plant and office buildings are located.

Account of Current Liabilities , the criteria is to have a liquidity speed less of one year

Notes Payable Short Term - Total Notes due in six months.  

Account of Non Current Liabilities, the criteria is to have a liquidity speed more than one year and are known as long term financing

Notes Payable Long Term - Total Notes due in three installments on August 2022  

Explanation:

2016         Balance Sheet

$29,000  Short Term Investment Stock

$29,000   TOTAL CURRENT ASSETS  

$29,000  Long Term Investment Stock

$27,000  Long Term Investment Land

$107,000 Land

$163,000  TOTAL NONCURRENT ASSETS  

$192,000  TOTAL ASSETS  

$114,000   Notes Payable  

$114,000     TOTAL CURRENT LIABILITIES  

$171,000   Notes Payable  

$171,000   TOTAL NONCURRENT LIABILITIES  

$285,000  TOTAL LIABILITIES