Question

The following is a December 31, 2021, post-closing trial balance for Almway Corporation. Account Title Debits Credits Cash $ 79,000 Investment in equity securities 144,000 Accounts receivable 77,000 Inventory 217,000 Prepaid insurance (for the next 9 months) 5,000 Land 124,000 Buildings 437,000 Accumulated depreciation-buildings $ 117,000 Equipment 127,000 Accumulated depreciation-equipment 77,000 Patent (net) 27,000 Accounts payable 109,000 Notes payable 181,000 Interest payable 37,000 Bonds Payable 257,000 Common stock 351,000 Retained earnings 108,000 Totals $1,237,000 $1,237,000 Additional Information: 1. The Investment in equity securities account includes an investment in common stock of another corporation of $47,000 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 $42,000 that the company has not used and is currently listed for sale. 3. The cash account includes $32,000 restricted in a fund to pay bonds payable that mature in 2024 and $40,000 restricted in a three-month Treasury bill. 4. The notes payable account consists of the following: a. a $47,000 note due in six months. b. a $67,000 note due in six years. c. a $67,000 note due in five annual Installments of $13,400 each, with the next Installment due February 15, 2022 5. The $77,000 balance in accounts recevable is net of an allowance for uncollectible accounts of $4,000. 6. The common stock account represents 117,000 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, 2021. (Amounts to be deducted should be Indicated by a minus sign.)
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Answer 1

Answer:

Almway corporation Balance sheet at December 31,2018
	Amount	Amount
Assets
Current Assets
Cash and cash equivalent($79000-$32000)	$47000
Short term investment ($144000-$47000)	$97000
Account receivable net of allowances	$77000
Inventories	$217000
Prepaid insurance	$5000
Total current assets		$443000
Investment
Marketable securities	$47000
Land held for sale	$42000
Restricted cash	$32000
Total investment		$121000
Plant property and equipment
Land ($124000-$42000)	$82000
Building	$437000
Accumulated deperation ( Building)	($117000)
Equipment	$127000
Accumulated deperation ( Equipment )	($77000)
Net Plant property and equipment		$452000
Intangible Assets
Patents ( net of amortization)		$27000
Total Assets		$1043000
Liabilities and stock holder equity
Current liabilities
Account payable	$109000
Interest payable	$37000
Note payable (due in 6 months)	$47000
Current maturity of long term debt(notes payable)	$13400
Total current liability		$206400
Long term liabilities
Notes payable ($181000-$47000-$13400)	$120600
Bond payable	$257000
Total long term liabilities		$377600
Shareholders equity
Authorised 500000 shares
Issued and outstanding shares	$351000
Retained earnings	$108000
Total shareholders equity		$459000
Total liabilities and shareholders equity		$1043000