Question: The following is a December 31 2013 post closing trial balance

The following is a December 31, 2013, post-closing trial balance for the Vosburgh Electronics Corporation.

Additional Information:
1. The common stock represents 1 million shares of no par stock authorized, 500,000 shares issued and outstanding.
2. The loans to employees are due on June 30, 2014.
1 The Role of Accounting as an Information System
3. The note receivable is due in installments of $50,000, payable on each September 30. Interest is payable annually.
4. Short-term investments consist of marketable equity securities that the company plans to sell in 2014 and $50,000 in treasury bills purchased on December 15 of the current year that mature on February 15, 2014.
Long-term investments consist of marketable equity securities that the company does not plan to sell in the next year.
5. Unearned revenue represents customer payments for extended service contracts. Eighty percent of these contracts expire in 2014, the remainder in 2015.
6. Notes payable consists of two notes, one for $100,000 due on January 15, 2015, and another for $200,000 due on June 30, 2016.Required:
1. Prepare a classified balance sheet for Vosburgh at December 31, 2013.
2. Identify the items that would require additional disclosure, either on the face of the balance sheet or in a disclosure note.

View Solution:

Sale on SolutionInn
  • CreatedDecember 23, 2013
  • Files Included
Post your question