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

Asked by bizgrad
Dated: 12th Nov'17 02:19 PM
Bounty offered: $10.00

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

Account Title

Debits

Credits

Cash

75,000

Investments

140,000

Accounts receivable

75,000

Inventories

215,000

Prepaid insurance (for the next 9 months)

7,000

Land

120,000

Buildings

435,000

Accumulated depreciation—buildings

115,000

Equipment

125,000

Accumulated depreciation—equipment

75,000

Patents (net of amortization)

25,000

Accounts payable

105,000

Notes payable

175,000

Interest payable

35,000

Bonds Payable

255,000

Common stock

345,000

Retained earnings

112,000

Totals

1,217,000

1,217,000



Additional information:

1. The investment account includes an investment in common stock of another corporation of $45,000 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 $40,000 that the company has not used and is currently listed for sale.

3. The cash account includes $30,000 restricted in a fund to pay bonds payable that mature in 2021 and $38,000 set aside in a three-month Treasury bill.

4. The notes payable account consists of the following:

a. a $45,000 note due in six months.

b. a $65,000 note due in six years.

c. a $65,000 note due in five annual installments of $13,000 each, with the next installment due February 15, 2019.

5. The $75,000 balance in accounts receivable is net of an allowance for uncollectible accounts of $5,000.

6. The common stock account represents 115,000 shares of no par value common stock issued and outstanding. The corporation has 400,000 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.)

The following is a December 31, 2018, post-closing trial balance for Almway Corporation.
Answered by bizgrad
Expert Rating: 2370 Ratings
Dated: 12th Nov'17 02:19 PM
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