The following is the ending balances of accounts at December 31, 2024, for the Vosburgh Electronics Corporation. Additional Information: 1.
The following is the ending balances of accounts at December 31, 2024, for the Vosburgh Electronics Corporation.
1. The receivables from employees are due on June 30, 2025.
2. The notes receivable are due in installments of $50,000, payable on each September 30. Interest is payable annually.
3. Short-term investments consist of securities that the company plans to sell in 2025 and $50,000 in treasury bills purchased on December 15 of the current year that mature on February 15, 2025. Long-term investments consist of securities that the company does not plan to sell in the next year.
4. Deferred revenue represents payments from customers for extended service contracts. Eighty percent of these contracts expire in 2025, the remainder in 2026.
5. Notes payable consists of two notes, one for $100,000 due on January 15, 2026, and another for $200,000 due on June 30, 2027.
1. Prepare a classified balance sheet for Vosburgh at December 31, 2024. Include headings for each classification, as well as titles for each classification’s subtotal. An example of a classified balance sheet can be found in the Concept Review Exercise at the end of Part A of this chapter.
2. Identify the items that would require additional disclosure, either on the face of the balance sheet or in a disclosure note.
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