Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

The following is a December 31, 2016, post-closing trial balance for Almway Corporation. Account Title Debits Credits Cash 73,000 Investments 138,000 Accounts receivable 74,000 Inventories

The following is a December 31, 2016, post-closing trial balance for Almway Corporation.
Account Title Debits Credits
Cash 73,000
Investments 138,000
Accounts receivable 74,000
Inventories 214,000
Prepaid insurance 5,000
Land 118,000
Buildings 434,000
Accumulated depreciationbuildings 114,000
Equipment 124,000
Accumulated depreciationequipment 74,000
Patents (net of amortization) 24,000
Accounts payable 103,000
Notes payable 172,000
Interest payable 34,000
Bonds Payable 254,000
Common stock 342,000
Retained earnings 111,000
Totals 1,204,000 1,204,000
Additional information:
1.

The investment account includes an investment in common stock of another corporation of $44,000 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 $39,000 that the company has not used and is currently listed for sale.

3.

The cash account includes $29,000 restricted in a fund to pay bonds payable that mature in 2019 and $37,000 set aside in a three-month Treasury bill.

4. The notes payable account consists of the following:
a. a $44,000 note due in six months.
b. a $64,000 note due in six years.
c.

a $64,000 note due in five annual installments of $12,800 each, with the next installment due February 15, 2017.

5. The $74,000 balance in accounts receivable is net of an allowance for uncollectible accounts of $9,000.
6.

The common stock account represents 114,000 shares of no par value common stock issued and outstanding. The corporation has 700,000 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.)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Management Accounting And Control Systems An Organizational And Sociological Approach

Authors: Norman B. Macintosh, Paolo Quattrone

2nd Edition

0470714476, 978-0470714478

More Books

Students also viewed these Accounting questions

Question

Define recruitment.

Answered: 1 week ago

Question

Identify external recruitment sources.

Answered: 1 week ago