Question

The following is a December 31, 2021, post-closing trial balance for Almway Corporation. Account Title Cash Investment in equity securities Accounts receivable Inventory Prepaid insurance (for the next 9 months) Land Buildings Accumulated depreciation-buildings Equipment Accumulated depreciation-equipment Patent (net) Accounts payable Notes payable Interest payable Bonds Payable Common stock Retained earnings Totals Debits Credits $ 85,000 150,000 80,000 220,000 8,000 130,000 440,000 $ 120,000 130,000 80,000 30,000 115,000 190,000 40,000 260,000 360,000 108,000 $1,273,000 $1,273,000 Additional information: 1. The investment in equity securities account includes an investment in common stock of another corporation of $50,000 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 $45,000 that the company has not used and is currently listed for sale. 3. The cash account includes $35,000 restricted in a fund to pay bonds payable that mature in 2024 and $43,000 restricted in a three-month Treasury bill. 4. The notes payable account consists of the following: a. a $50,000 note due in six months. b. a $70,000 note due in six years. c. a $70,000 note due in five annual installments of $14,000 each, with the next installment due February 15, 2022. 5. The $80,000 balance in accounts receivable is net of an allowance for uncollectible accounts of $5,000. 6. The common stock account represents 120,000 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.)

Answer 1

$ 50,000 $ 1,00,000 $ 80,000 $ 2,20,000 $ 8,000 $ 4,58,000 ALMWAY CORPORATION Balance Sheet At December, 2021 Assets 5 Current Assets 6 Cash and Cash Equivalents 7 Short term Investments 8 Accounts Receivable $ 85,000 9 Less: Allowance for uncollectible accounts $ -5,000 10 Net accounts receivable 11 Inventory 12 Prepaid Insurance 13 Total Current Assets 14 Investments 15 Marketable Securities $ 50,000 16 Land Held for Sale $ 45,000 17 Restriced cash $ 35,000 18 Total Investments 19 Property plant and equipment 20 Land $ 85,000 21 Buildings $ 4,40,000 22 Equipment $ 1,30,000 23 $ 6,55,000 24 Less: Accumulated Depreciation-Buildings $-1,20,000 25 Less: Accumulated Depreciation Equipment $ -80,000 26 Net Property,plant and Equipment $ 1,30,000 $ 4,55,000

$ 30,000 $ 10,73,000 27 Intangible assets: 28 Patents 29 Total Assets 30 31 Liabilities and Shareholders Equity 32 Current Liabilities: 33 Accounts Payable 34 Interest Payable 35 Notes Payable 36 Current Maturities of long term debt 37 Total Current Liabilities 38 Long Term Liabilities: 39 Notes Payable $ 1,26,000 40 Bonds Payable $ 2,60,000 41 Total Long term Liabilities 42 43 Shareholders Equity: 44 Common Stock $ 3,60,000 45 Retained Earnings $ 1,08,000 46 Total Shareholders' Equity 47 Total Liabilities and Shareholders' Equity $ 1,15,000 $ 40,000 $ 50,000 $ 14,000 $ 2,19,000 $ 3,86,000 $ 4,68,000 $ 10,73,000

=85000-35000 =150000-50000 80000 220000 8000 =SUM(C6:012) ALMWAY CORPORATION Balance Sheet At December, 2021 Assets 5 Current Assets 6 Cash and Cash Equivalents 7 Short term Investments 8 Accounts Receivable =+C10-B9 9 Less: Allowance for uncollectible accounts -5000 10 Net accounts receivable 11 Inventory 12 Prepaid Insurance 13 Total Current Assets 14 Investments 15 Marketable Securities 50000 16 Land Held for Sale 45000 17 Restriced cash 35000 18 Total Investments 19 Property plant and equipment 20 Land =130000-B16 21 Buildings 440000 22 Equipment 130000 =+B20+B21+B22 24 Less: Accumulated Depreciation-Buildings - 120000 25 Less: Accumulated Depreciation-Equipment |-80000 26 Net Property,plant and Equipment =SUM(B15:B17) 23 =+B23+B24+B25

27 Intangible assets: 28 Patents 30000 =+C13+C18+C26+C28 29 Total Assets 30 115000 40000 50000 14000 =SUM(C33:C36) Liabilities and Shareholders Equity 32 Current Liabilities: 33 Accounts Payable 34 Interest Payable 35 Notes Payable 36 Current Maturities of long term debt 37 Total Current Liabilities 38 Long Term Liabilities: 39 Notes Payable =190000-C35-C36 40 Bonds Payable 260000 41 Total Long term Liabilities 42 43 Shareholders Equity: 44 Common Stock 360000 45 Retained Earnings 108000 46 Total Shareholders' Equity 47 Total Liabilities and Shareholders' Equity =+B39+B40 =+B44+B45 =+C37+C41+C46