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The following is a December 31, 2018, post-closing trial balance for Almway Corporation. Account Title Debits Credits Cash $ 75,000 Investments 140,000 Accounts receivable 75,000
The following is a December 31, 2018, post-closing trial balance for Almway Corporation.
Account Title | Debits | Credits | |||||||
Cash | $ | 75,000 | |||||||
Investments | 140,000 | ||||||||
Accounts receivable | 75,000 | ||||||||
Inventories | 215,000 | ||||||||
Prepaid insurance (for the next 9 months) | 7,000 | ||||||||
Land | 120,000 | ||||||||
Buildings | 435,000 | ||||||||
Accumulated depreciationbuildings | $ | 115,000 | |||||||
Equipment | 125,000 | ||||||||
Accumulated depreciationequipment | 75,000 | ||||||||
Patents (net of amortization) | 25,000 | ||||||||
Accounts payable | 105,000 | ||||||||
Notes payable | 175,000 | ||||||||
Interest payable | 35,000 | ||||||||
Bonds Payable | 255,000 | ||||||||
Common stock | 345,000 | ||||||||
Retained earnings | 112,000 | ||||||||
Totals | $ | 1,217,000 | $ | 1,217,000 | |||||
Additional information:
- The investment account includes an investment in common stock of another corporation of $45,000 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 $40,000 that the company has not used and is currently listed for sale.
- The cash account includes $30,000 restricted in a fund to pay bonds payable that mature in 2021 and $38,000 set aside in a three-month Treasury bill.
- The notes payable account consists of the following:
- a $45,000 note due in six months.
- a $65,000 note due in six years.
- a $65,000 note due in five annual installments of $13,000 each, with the next installment due February 15, 2019.
- The $75,000 balance in accounts receivable is net of an allowance for uncollectible accounts of $5,000.
- The common stock account represents 115,000 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, 2018.
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