Question
The following is a December 31, 2018, post-closing trial balance for Almway Corporation. Account TitleDebitsCreditsCash$45,000Investments110,000Accounts receivable60,000Inventories200,000Prepaid insurance (for the next 9 months)9,000Land90,000Buildings420,000Accumulated depreciationbuildings$100,000Equipment110,000Accumulated depreciationequipment60,000Patents (net
The following is a December 31, 2018, post-closing trial balance for Almway Corporation.
Account TitleDebitsCreditsCash$45,000Investments110,000Accounts receivable60,000Inventories200,000Prepaid insurance (for the next 9 months)9,000Land90,000Buildings420,000Accumulated depreciationbuildings$100,000Equipment110,000Accumulated depreciationequipment60,000Patents (net of amortization)10,000Accounts payable75,000Notes payable130,000Interest payable20,000Bonds Payable240,000Common stock300,000Retained earnings129,000Totals$1,054,000$1,054,000
Additional information:
- The investment account includes an investment in common stock of another corporation of $30,000 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 $25,000 that the company has not used and is currently listed for sale.
- The cash account includes $15,000 restricted in a fund to pay bonds payable that mature in 2021 and $23,000 restricted in a three-month Treasury bill.
- The notes payable account consists of the following:
- a $30,000 note due in six months.
- a $50,000 note due in six years.
- a $50,000 note due in five annual installments of $10,000 each, with the next installment due February 15, 2019.
- The $60,000 balance in accounts receivable is net of an allowance for uncollectible accounts of $8,000.
- The common stock account represents 100,000 shares of no par value common stock issued and outstanding. The corporation has 500,000 shares authorized.
Required:
a classified balance sheet for the Almway Corporation at December 31, 2018.(Amounts to be deducted should be indicated by a minus sign.)
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