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Exercise 3-5 (Algo) Balance sheet preparation (LO3-2, 3-3] The following are the ending balances of accounts at December 31, 2021, for the Valley Pump Corporation. Credits Debits $ 33,000 72,000 97,000 $ 18,000 60,000 136,000 340,000 108,000 91,000 Account Title Cash Accounts receivable Inventory Interest payable Investment in equity securities Land Buildings Accumulated depreciation-buildings Equipment Accumulated depreciation-equipment Copyright (net) Prepaid expenses (next 12 months) Accounts payable Deferred revenue (next 12 months) Notes payable Allowance for uncollectible accounts Common stock Retained earnings Totals 33,000 20,000 40,000 73,000 28,000 290,000 8,000 280,000 51,000 $889,000 $889,000 Additional Information: 1. The $136,000 balance in the land account consists of $108,000 for the cost of land where the plant and office buildings are located. The remaining $28,000 represents the cost of land being held for speculation. 2. The $60,000 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. 3. The notes payable account consists of a $116,000 note due in six months and a $174,000 note due in three annual installments of $58,000 each, with the first payment due in August of 2022. Required: Prepare a classified balance sheet for the Valley Pump Corporation at December 31, 2021. Use the additional information to help determine appropriate classifications and account balances. (Amounts to be deducted should be indicated by a minus sign.) VALLEY PUMP CORPORATION Balance Sheet VALLEY PUMP CORPORATION Balance Sheet At December 31, 2021 Assets Current assets: Cash $ 33,000 72,000 Accounts receivable Allowance for uncollectible accounts 97,000 Inventory Prepaid expenses 40,000 Total current assets 242,000 Investments: $ Investment in equity securities Land 60,000 136,000 Total investments 196,000 Property, plant, and equipment: Land 136,000 340,000 Buildings Depreciation expense 476,000 476,000 Net property, plant, and equipment Intangible assets: Total assets $ 914,000 Liabilities and Shareholders' Equity Current liabilities

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