Question

The following is a December 31, 2018, post-closing trial balance for Almway Corporation Account Title Cash InvestmentS Accounts receivable Inventories Prepaid insurance (for the next 9 months) Land Buildings Accumulated depreciation-buildings Equipment Accumulated depreciation-equipment Patents (net of amortization) Accounts payable Notes pavable Interest payable Bonds Payable Common stock Retained earnings Totals Debits Credits $45,000 110,000 60,000 200,000 9,000 90,000 420,000 s 100,000 110,000 60,000 10,000 75,000 130,000 20,000 240,000 300,000 129,000 $1,054,000 $1,054,000 Additional information 1. 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 2. The land account includes land which cost $25,000 that the company has not used and is currently listed for sale 3. 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 4. 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 5. The $60,000 balance in accounts receivable is net of an allowance for uncollectible accounts of $8,000 6. The common stock account represents 100,000 shares of no par value common stock issued and outstanding. The corporation has 500,000 shares authorized

Answer 1

Solution :-

Balance Sheet of Almway Corporation as at December 31, 2018 Particulars Assets Intangible Assets Patents (Net of Amortization) Total Intangible Assets Amount Amount 10,000 $ 10,000 Fixed Assets Land Buildings Less - Accumulated Depreciation Equipment Less - Accumulated Depreciation Total Fixed Assets S65,000 S 100,000 S 320,000 $-60,000 50,000 420,000 110,000 $ 435,000 Investments Investment in Marketable Securities Land held for Sale Bond Sinking Fund Total Investments 30,000 $ 25,000 15,000 $70,000 Current Assets Inventories Accounts Receivable Less : Allowance for Uncollectible accounts Prepaid Insurance Short Term Investment Cash and Cash Equivalent Total Current Assets $ 200,000 68,000 8,000 $60,000 9,000 $80,000 S30,000 $379,000 Total Assets $ 894,000 quity and Liabilities Equities Common Stock Retained Earnings Total Equities $ 300,000 129,000 $ 429,000 Long Term Liabilities Notes Payable Bonds Payable Total Long Term Liabilities $ 90,000 $ 240,000 $ 330,000 Current Liabilities Notes Payable Current Maturities of Long Term Note Payable Accounts Payable Interest Payable Total Current Liabilities S 30,000 10,000 $ 75,000 20,000 $ 135,000 Total Equity and Liabilities $894,000