VALLEY PUMP CORPORATION Balance Sheet At December 31, 2013 Assets Current assets: Cash.................................................................................$25,000 Marketable securities......................................................22,000 Accounts receivable, net of allowance for uncollectible accounts of $5,000...............................51,000 Inventories.......................................................................81,000 Prepaid expenses.............................................................32,000 Total current assets....................................................211,000 Investments: Marketable securities......................................................$22,000 Land................................................................................20,000 Total investments......................................................42,000 Property, plant, and equipment: Land................................................................................100,000 Buildings.........................................................................300,000 Equipment.......................................................................75,000 475,000 Less: Accumulated depreciation.....................................(125,000) Net property, plant, and equipment...........................350,000 Intangible assets: Copyright........................................................................12,000 Total assets.............................................................$615,000 Liabilities and Shareholders' Equity Current liabilities: Accounts payable............................................................$65,000 Interest payable...............................................................10,000 Unearned revenues..........................................................20,000 Note payable...................................................................100,000 Current maturities of long-term debt..............................50,000 Total current liabilities..............................................245,000 Long-term liabilities: Note payable...................................................................100,000 Shareholders’ equity: Common stock................................................................$200,000 Retained earnings............................................................70,000 Total shareholders’ equity.........................................270,000 Total liabilities and shareholders’ equity...............$615,000
Exercise 3–6 E 3–6Balance sheet;Current versusnoncurrentclassification•LO3–2,LO3–3Presented below is the ending balances of accounts for the Kansas Instruments Corporation at December 31, 2016. Account Title Debits Credits Cash20,000 Accounts receivable130,000 Raw materials24,000 Note receivable100,000 Interest receivable3,000 Interest payable5,000 Marketable securities32,000 Land50,000 Buildings1,300,000 Accumulated depreciation—buildings620,000 Work in process42,000 Finished goods89,000 Equipment300,000 Accumulated depreciation—equipment130,000 Patent (net of amortization)120,000 Prepaid rent (for the next two years)60,000 Deferred revenue36,000 Accounts payable180,000 Note payable400,000 Cash restricted for payment of note payable80,000
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