Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

The following is a December 31, 2018, post-closing trial balance for Almway Corporation. Account Title Debits Credits Cash $ 63,000 Investments 128,000 Accounts receivable 69,000

The following is a December 31, 2018, post-closing trial balance for Almway Corporation. Account Title Debits Credits Cash $ 63,000 Investments 128,000 Accounts receivable 69,000 Inventories 209,000 Prepaid insurance (for the next 9 months) 7,000 Land 108,000 Buildings 429,000 Accumulated depreciationbuildings $ 109,000 Equipment 119,000 Accumulated depreciationequipment 69,000 Patents (net of amortization) 19,000 Accounts payable 94,000 Notes payable 157,000 Interest payable 29,000 Bonds Payable 249,000 Common stock 327,000 Retained earnings 117,000 Totals $ 1,151,000 $ 1,151,000 Additional information: The investment account includes an investment in common stock of another corporation of $39,000 which management intends to hold for at least three years. The balance of these investments is intended to be sold in the coming year. The land account includes land which cost $34,000 that the company has not used and is currently listed for sale. The cash account includes $24,000 restricted in a fund to pay bonds payable that mature in 2021 and $32,000 set aside in a three-month Treasury bill. The notes payable account consists of the following: a $39,000 note due in six months. a $59,000 note due in six years. a $59,000 note due in five annual installments of $11,800 each, with the next installment due February 15, 2019. The $69,000 balance in accounts receivable is net of an allowance for uncollectible accounts of $6,000. The common stock account represents 109,000 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, 2018. (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

Auditing And EDP Objective Questions And Explanations

Authors: Irvin N Gleim, William A. Hillison

4th Edition

0917537432, 978-0917537431

More Books

Students also viewed these Accounting questions