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 $ 67,000 132,000 71,800 211,000 9,000 112,000 431,000 $ 111,080 121,000 71,090 21,080 97,000 163,080 31,898 251,000 333,080 118,000 $1,175,000 $1,175,000 Additional information: 1. The investment in equity securities account includes an investment in common stock of another corporation of $41,000 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 $36,000 that the company has not used and is currently listed for sale 3. The cosh account includes $26,000 restricted in a fund to pay bonds payable that mature in 2024 and $34,000 restricted in a three month Treasury bill 4. The notes payable account consists of the following: 2. a $41,000 note due in six months. b. a $61.000 note due in six years c. a $61,000 note due in five annual installments of $12.200 each with the next installment due February 15, 2022 Prey 12 of 15 !!! Next > P O W a (hp

Answer 1

CORPORATION & 41,000 ALMWAY Balance Sheet At December 31, 2021 Assets Current assets : Cash and Cash equivalents Short-term investments $ 91,000 Accounts receivable, net of allowance 71,000 Inventories $ 211,000 Prepaid insurance $ 9,000 Total current assets $ 423,000 Investments: Marketable securities $ 41,000 hand held for sale 36,000 Bond sinking fund. 26,000 Total investments $ 103,000 Property, plant and equipment & Land $ 76,000 Buildings & 431,000 Equipment & 126000 $622,000 Less & Accumulated depreciation $ 1&2,000 Net property, plant ļ equipment Intangible assets : Patents 446,000 $ 21,000 & 993,000 Total assets

and shareholders Equity -term debt $ 97,000 $ 31,000 $ 12,200 & 46000 $ 18), 200 $ 109,800 & 360, doo Liabilities Current liabilities: Accounts payable Interest payable Current maturities of long-t Notes payable Total current liabilities Long term M'abilities : Notes payable Bonds payable $ 251,000 Total long-term liabilities Shareholders equity : Common stock $ 333,000 Retained earnings $ 118,000 $ Total shareholders eqinity 45,000 $ 993,000 Total liabilities & sharcholders equity Calculation: Investment in common Investments Short-term investments stock $ 132,000 $ 42,000 $ 11,000 Land hand Land held for sale $ 112,000 $36,000 $ 76,000 Alcumulated depreciation = Accumulated dep on + Accumulated dep, on equipment $ 111,000 & $ 11,000 $ 182,000 Notes Payable $ 163,000 $ 41,000 $ 12, 200 $ 109,800 buildings