Question

The following is a December 31, 2018, post-closing trial balance for Almway Corporation. Account Title Debits Credits Cash $ 83,000 Investments 148,000 Accounts receivable 79,000 Inventories 219,000 Prepaid insurance (for the next 9 months) 9,000 Land 128,000 Buildings 439,000 Accumulated depreciation—buildings $ 119,000 Equipment 129,000 Accumulated depreciation—equipment 79,000 Patents (net of amortization) 29,000 Accounts payable 113,000 Notes payable 187,000 Interest payable 39,000 Bonds Payable 259,000 Common stock 357,000 Retained earnings 110,000 Totals $ 1,263,000 $ 1,263,000 Additional information: The investment account includes an investment in common stock of another corporation of $49,000 which management intends to hold for at least three years. The balance of these investments is intended to be sold in the coming year. The land account includes land which cost $44,000 that the company has not used and is currently listed for sale. The cash account includes $34,000 restricted in a fund to pay bonds payable that mature in 2021 and $42,000 set aside in a three-month Treasury bill. The notes payable account consists of the following: a $49,000 note due in six months. a $69,000 note due in six years. a $69,000 note due in five annual installments of $13,800 each, with the next installment due February 15, 2019. The $79,000 balance in accounts receivable is net of an allowance for uncollectible accounts of $6,000. The common stock account represents 119,000 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.) rev: 01_25_2018_QC_CS-115008

Answer 1

Balance sheet
Assets			Liabilties & shareholder's equity
Current Assets			Current liabilties:
Cash and cash equivalents(83000-34000)	$      49,000		Accounts payable	$ 113,000
Short term investments(148000-49000)	$      99,000		Interest payable	$    39,000
Accounts receivable ,net of provisions of $6000	$      79,000		Note payable	$    49,000
Inventories	$   219,000		Current maturities of long term debt	$    13,800
Prepaid insurance	$        9,000		total current liabilties		$     214,800
Total current assets		$     455,000
			Long term liabilties
Investments			Notes payable(69000+69000-13800)	$ 124,200
Marketable securities	$      49,000		Bonds payable	$ 259,000
Land held for sale	$      44,000		Total long term liailities		$     383,200
Bond sinking fund	$      34,000		total liabilities		$     598,000
total investments		$     127,000
			Shareholder's equity
PP&EE			common stock(600000 shares authorised , 119000 shares issued and outstanding)	$ 357,000
Land	$      84,000		retained earnigns	$ 110,000
Building	$   439,000		total Shareholder's equity		$     467,000
Equipment	$   129,000
	$   652,000
Les:accumulated depriciation	$ (198,000)	$     454,000
intangible assets
patents	$      29,000	$        29,000
total assets		$ 1,065,000	total liabilties &equity		$ 1,065,000