Problem 24-1 Your firm has been engaged to examine the financial statements of Almaden Corporation for the year 2017. The bookkeeper who maintains the financial records has prepared all the unaudited financial statements for the corporation since its organization on January 2, 2012. The client provides you with the information below ALMADEN CORPORATION BALANCE SHEET DECEMBER 31, 2017 Assets Liabilities Current liabilities Long-term liabilities Capital Current assets $1,881,100 $962,400 1,439,500 4,650,600 7,052,500 Other assets 5,171,400 57,052,500 An analysis of current assets discloses the following Cash (restricted in the amount of $300,000 for plant expansion) Investments in land Accounts receivable less allowance of $30,000 Inventories (LIFO flow assumption) $571,000 185,000 480,000 645,100 $1,881,100 Other assets include Prepaid expenses Plant and equipment less accumulated depreciation of $1,430,000 Cash surrender value of life insurance policy Unamortized bond discount Notes receivable (short-term) Goodwill Land $62,400 4,130,000 84,000 34,500 162,300 252,000 446,200 $5,171,400 Current liabilities include: Accounts payable Notes payable (due 2020) Estimated income taxes payable Premium on common stock $510,000 157,400 145,000 150,000 $962,400 Problem 24-1 Your firm has been engaged to examine the financial statements of Almaden Corporation for the year 2017. The bookkeeper who maintains the financial records has prepared all the unaudited financial statements for the corporation since its organization on January 2, 2012. The client provides you with the information below ALMADEN CORPORATION BALANCE SHEET DECEMBER 31, 2017 Assets Liabilities Current liabilities Long-term liabilities Capital Current assets $1,881,100 $962,400 1,439,500 4,650,600 7,052,500 Other assets 5,171,400 57,052,500 An analysis of current assets discloses the following Cash (restricted in the amount of $300,000 for plant expansion) Investments in land Accounts receivable less allowance of $30,000 Inventories (LIFO flow assumption) $571,000 185,000 480,000 645,100 $1,881,100 Other assets include Prepaid expenses Plant and equipment less accumulated depreciation of $1,430,000 Cash surrender value of life insurance policy Unamortized bond discount Notes receivable (short-term) Goodwill Land $62,400 4,130,000 84,000 34,500 162,300 252,000 446,200 $5,171,400 Current liabilities include: Accounts payable Notes payable (due 2020) Estimated income taxes payable Premium on common stock $510,000 157,400 145,000 150,000 $962,400