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 $ 49,000 114,000 62,000 202,000 5,000 94,000 422,000 $ 102,000 112,000 62,000 12,000 79,000 136,000 22,000 242,000 306,000 123,000 $1,072,000 $1,072,000 Additional information: 1. The investment in equity securities account includes an investment in common stock of another corporation of $32,000 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 $27,000 that the company has not used and is currently listed for sale. 3. The cash account includes $17,000 restricted in a fund to pay bonds payable that mature in 2024 and $25,000 restricted in a three- month Treasury bill. 4. The notes payable account consists of the following: a. a $32,000 note due in six months. b. a $52,000 note due in six years. c. a $52,000 note due in five annual installments of $10,400 each, with the next installment due February 15, 2022. 5. The $62,000 balance in accounts receivable is net of an allowance for uncollectible accounts of $10,000. 6. The common stock account represents 102,000 shares of no par value common stock issued and outstanding. The corporation has 300,000 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

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Almway Company
Classified Balance Sheet
Assets	Amount $	Amount $
Current Assets
Cash		7,000.00
Treasury Bills		25,000.00
Short Term Investments		82,000.00
Accounts receivable	72,000.00
Less: Allowance for uncollectible trade customers	(10,000.00)	62,000.00
Inventory		202,000.00
Prepaid Insurance		5,000.00
Current Assets		383,000.00
Long Term Investments
Investment in equity securities	32,000.00
Long Term Investments		32,000.00
Plant, Property & Equipment
Land		67,000.00
Building	422,000.00
Less: Accumulated Depreciation- Building	(102,000.00)	320,000.00
Equipment	112,000.00
Less: Accumulated Depreciation-Equipment	(62,000.00)	50,000.00
Plant, Property & Equipment (net)		437,000.00
Intangible Assets
Patent (net)	12,000.00
Intangible Assets		12,000.00
Other Assets
Restricted cash balance to pay note payable	17,000.00
Land (held for sale)	27,000.00
Other Assets		44,000.00
Total Assets		908,000.00
Liabilities & Stockholder's Equity
Liabilities	Amount $	Amount $
Current Liabilities
Accounts payable	79,000.00
Interest payable	22,000.00
Notes payable- Current Portion	42,400.00
Current Liabilities		143,400.00
Non Current Liabilities
Notes payable- Non Current Portion	93,600.00
Bonds payable	242,000.00
Non Current Liabilities		335,600.00
Total Liabilities		479,000.00
Stockholder's Equity
Common Stock (300,000 shares of no par authorized, 102,000 issued and outstanding)	306,000.00
Retained Earnings	123,000.00
Total Stockholder's Equity		429,000.00
Total Liabilities & Stockholder's Equity		908,000.00