Question
The following is a December 31, 2016, post-closing trial balance for Almway Corporation. Account Title Debits Credits Cash 77,000 Investments 142,000 Accounts receivable 76,000 Inventories
The following is a December 31, 2016, post-closing trial balance for Almway Corporation. |
Account Title | Debits | Credits | ||||
Cash | 77,000 | |||||
Investments | 142,000 | |||||
Accounts receivable | 76,000 | |||||
Inventories | 216,000 | |||||
Prepaid insurance | 6,000 | |||||
Land | 122,000 | |||||
Buildings | 436,000 | |||||
Accumulated depreciationbuildings | 116,000 | |||||
Equipment | 126,000 | |||||
Accumulated depreciationequipment | 76,000 | |||||
Patents (net of amortization) | 26,000 | |||||
Accounts payable | 107,000 | |||||
Notes payable | 178,000 | |||||
Interest payable | 36,000 | |||||
Bonds Payable | 256,000 | |||||
Common stock | 348,000 | |||||
Retained earnings | 110,000 | |||||
Totals | 1,227,000 | 1,227,000 | ||||
Additional information: |
1. | The investment account includes an investment in common stock of another corporation of $46,000 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 $41,000 that the company has not used and is currently listed for sale. |
3. | The cash account includes $31,000 restricted in a fund to pay bonds payable that mature in 2019 and $39,000 set aside in a three-month Treasury bill. |
4. | The notes payable account consists of the following: |
a. | a $46,000 note due in six months. | |
b. | a $66,000 note due in six years. | |
c. | a $66,000 note due in five annual installments of $13,200 each, with the next installment due February 15, 2017. |
5. | The $76,000 balance in accounts receivable is net of an allowance for uncollectible accounts of $6,000. |
6. | The common stock account represents 116,000 shares of no par value common stock issued and outstanding. The corporation has 300,000 shares authorized. |
Required: |
Prepare a classified balance sheet for the Almway Corporation at December 31, 2016. (Amounts to be deducted should be indicated by a minus sign.) |
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