Balance sheet preparation; disclosures •1)LO3-2 through LO3-4   The following is the ending balances of accounts at December 31, 2018 for the Vosburgh Electronics Corporation

Balance sheet preparation; disclosures

•1)LO3-2 through LO3-4

The following is the ending balances of accounts at December 31, 2018 for the Vosburgh Electronics Corporation.

Account TitleDebits CreditsCash$67,000  Short-term investments182,000  Accounts receivable123,000  Long-term investments35,000  Inventories215,000  Loans to employees40,000  Prepaid expenses (for 2019)16,000  Land280,000  Building1,550,000  

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Machinery and equipment637,000  Patent152,000  Franchise40,000  Note receivable250,000  Interest receivable12,000  Accumulated depreciation—building  $620,000Accumulated depreciation—equipment  210,000Accounts payable  189,000Dividends payable (payable on 1/16/2019)  10,000Interest payable  16,000Taxes payable  40,000Deferred revenue  60,000Notes payable  300,000Allowance for uncollectible accounts  8,000Common stock  2,000,000Retained earnings  146,000Totals$ 3,599,000 $ 3,599,000

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, 2019.
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 2019 and $50,000 in treasury bills purchased on December 15 of the current year that mature on February 15, 2019. Long-term investments consist of marketable equity securities that the company does not plan to sell in the next year.
5. Deferred revenue represents customer payments for extended service contracts. Eighty percent of these contracts expire in 2019, the remainder in 2020.
6. Notes payable consists of two notes, one for $100,000 due on January 15, 2020, and another for $200,000 due on June 30, 2021.

Required:

1. Prepare a classified balance sheet for Vosburgh at December 31, 2018.
2. Identify the items that would require additional disclosure, either on the face of the balance sheet or in a disclosure note.