Question

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

Account Title	Debits					Credits
Cash		$	53,000
Investments			118,000
Accounts receivable			64,000
Inventories			204,000
Prepaid insurance (for the next 9 months)			8,000
Land			98,000
Buildings			424,000
Accumulated depreciation—buildings					$	104,000
Equipment			114,000
Accumulated depreciation—equipment						64,000
Patents (net of amortization)			14,000
Accounts payable						83,000
Notes payable						142,000
Interest payable						24,000
Bonds Payable						244,000
Common stock						312,000
Retained earnings						124,000
Totals		$	1,097,000		$	1,097,000

Additional information:

1. The investment account includes an investment in common stock of another corporation of $34,000 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 $29,000 that the company has not used and is currently listed for sale.
3. The cash account includes $19,000 restricted in a fund to pay bonds payable that mature in 2021 and $27,000 set aside in a three-month Treasury bill.
4. The notes payable account consists of the following:

1. a $34,000 note due in six months.
2. a $54,000 note due in six years.
3. a $54,000 note due in five annual installments of $10,800 each, with the next installment due February 15, 2019.

5. The $64,000 balance in accounts receivable is net of an allowance for uncollectible accounts of $6,000.
6. The common stock account represents 104,000 shares of no par value common stock issued and outstanding. The corporation has 600,000 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

ALMWAY CORPORATION Balance Sheet At December 31, 2018 Assets Current assets: Cash and cash equivalents Short-term investments Accounts receivable, net of allowance Inventories Prepaid insurance Total current assets Investments: Marketable securities Land held for sale Bond sinking tund $ 34,000 $ 84,000 $ 64,000 $ 204,000 & 8,000 * 394,000 & 34,000 $ 29,000 & 19,000 82,000 Total investments Property, plant and equipment: Land Buildings Equipment $ 69,000 & 424,000 $ 114,000 $ 439,000 Less. Accumulated depreciation - buildings & 104,000 Ley: Accumulated depreciation equipml 4 64,000 Net property, plant and equipment Intangible assets: $ 14,000 Patents Total assets $ 929,000

Liabilities and Shareholders' Equity Current Liabilities: Accounts payable $ 83,000 Interest payable $ 24,000 Current maturities of long-term debt $ 10,800 Notes Payable $ 34,000 Total current liabilities .. $ 151,800 Long term Mabilities: Notes payable & 97,200 Bonds payable $ 244,000 total long-term liabilities $ 341,200 Shareholders' equity Common stock & 312,000 Retained earnings $ 124,000 Total shareholders" equity $ 436,000 $ 929,000 Total liabilities and shareholders Calculation: Short-term investments = $ 118,000 - $34,000 - & 84,000 Land & 29,000 = - $ 98,000 $ 69,000 $10,800 Notes Payable = = $ 142,000 - $34,000 - $ 97,200