Question
The following is a December 31, 2013, post-closing trial balance for Almway Corporation. Account Title Debits Credits Cash 61,000 Investments 126,000 Accounts receivable 68,000 Inventories
The following is a December 31, 2013, post-closing trial balance for Almway Corporation.
Account Title | Debits | Credits | ||||
Cash | 61,000 | |||||
Investments | 126,000 | |||||
Accounts receivable | 68,000 | |||||
Inventories | 208,000 | |||||
Prepaid insurance | 6,000 | |||||
Land | 106,000 | |||||
Buildings | 428,000 | |||||
Accumulated depreciationbuildings | 108,000 | |||||
Equipment | 118,000 | |||||
Accumulated depreciationequipment | 68,000 | |||||
Patents (net of amortization) | 18,000 | |||||
Accounts payable | 91,000 | |||||
Notes payable | 154,000 | |||||
Interest payable | 28,000 | |||||
Bonds payable | 248,000 | |||||
Common stock | 324,000 | |||||
Retained earnings | 118,000 | |||||
| | | | | | |
Totals | 1,139,000 | 1,139,000 | ||||
| | | | | | |
|
1. | The investment account includes an investment in common stock of another corporation of $38,000 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 $33,000 that the company has not used and is currently listed for sale. |
3. | The cash account includes $23,000 set aside in a fund to pay bonds payable that mature in 2016 and $31,000 set aside in a three-month Treasury bill. |
4. | The notes payable account consists of the following: |
a. | a $38,000 note due in six months. | |
b. | a $58,000 note due in six years. | |
c. | a $58,000 note due in 5 annual installments of $11,600 each, with the next installment due February 15, 2014. |
5. | The $68,000 balance in accounts receivable is net of an allowance for uncollectible accounts of $5,000. |
6. | The common stock account represents 108,000 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, 2013. |
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