Question

The following is a December 31, 2018, post-closing trial balance for Almway Corporation.

Account Title	Debits		Credits
Cash	45,000
Investments	110,000
Accounts receivable	60,000
Inventories	200,000
Prepaid insurance (for the next 9 months)	9,000
Land	90,000
Buildings	420,000
Accumulated depreciation—buildings			100,000
Equipment	110,000
Accumulated depreciation—equipment			60,000
Patents (net of amortization)	10,000
Accounts payable			75,000
Notes payable			130,000
Interest payable			20,000
Bonds Payable			240,000
Common stock			300,000
Retained earnings			129,000
Totals	1,054,000		1,054,000

Additional information:

The investment account includes an investment in common stock of another corporation of $30,000 which management intends to hold for at least three years. The balance of these investments is intended to be sold in the coming year.

The land account includes land which cost $25,000 that the company has not used and is currently listed for sale.

The cash account includes $15,000 restricted in a fund to pay bonds payable that mature in 2021 and $23,000 restricted in a three-month Treasury bill.

The notes payable account consists of the following:

A) a $30,000 note due in six months.

B) a $50,000 note due in six years.

C) a $50,000 note due in five annual installments of $10,000 each, with the next installment due February 15, 2019.

The $60,000 balance in accounts receivable is net of an allowance for uncollectible accounts of $8,000.

The common stock account represents 100,000 shares of no par value common stock issued and outstanding. The corporation has 500,000 shares authorized.

Required:
Prepare a classified balance sheet for the Almway Corporation at December 31, 2018. (Amounts to be deducted should be indicated by a minus sign.)

Answer 1

Balance sheet
Assets
Current assets
Cash	30000
Short term investment	80000
Accounts receivable net of allowance	60000
Inventories	200000
Prepaid insurance	9000
Total current assets		379000
Investment
Marketable securities	30000
Land held for sale	25000
Restricted cash	15000
Total investment		70000
Plant property and equipment
Land	65000
Building	420000
Accumulated depreciation building	-100000
Equipment	110000
Accumulated depreciation equipment	-60000
Net property plant and equipment		435000
Intangible assets
Patents		10000
Total assets		894000
Liabilities and stockholders equity
Liabilities
Current liability
Accounts payable	75000
Interest payable	20000
Notes payable	30000
Current maturities of long term debt	10000
Total current liabilities		135000
Long term liabilities
Notes payable	90000
Bonds payable	240000
Total long term liabilities		330000
Shareholdres equity
Authorized 500000 shares
Issued and outstanding shares	300000
Retained earings	129000
Total shareholders equity		429000
Total liabilities and shareholders equity		894000