P3-3 (SA)

The following is a dec 31 2016 post closing trial balance for almway corporation

account title Debit Credit

Cash 45,000

investments 110,000

accounts rec. 60,000

inventories 200,000

prepaid ins. 9,000

land 90,000

buildings 420,000

accumulated dep.- buildings 100,000

equipment 110,000

accumulated dep.- equipment 60,000

patents (net of amortization) 10,000

accounts payable 75,000

notes payable 130,000

interest payable 20,000

bonds payable 240,000

common stock 300,000

retained earnings 129,000

totals Debits= 1,054,000 Credits=1,054,000

1. the investment account includes and investment in common stock of another corporation of 30,000 which mangment intends to hold for atleast 3 years the balance of these investments is inted to be sold in for sale

2. the land account includes land which cost 25,000 that the company had not used and is currently listed for sale.

3. the cash account includes 15,000 restricted in a fund to pay bonds payable that mature in 2019 and 23,000 restricted in a 3 month treasuery bill

4. the notes payable account consists of the following

a. a 30,000 note due in six months

b. a 50,000 note due in six months

c. a 50,000 note due in five annual installments of 10,000 each with the next installment due febuary 15 2017

5. the 60,000 balance in accounts recivable is net of an allowance for uncollectable accounts of 8,000

6. the common stock account represents 100,000 shares of no par value common stock issued and outstanding the corporation has 500,000 shares authorized