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 Cash Investments Accounts receivable Inventories Prepaid insurance (for the next

image text in transcribedimage text in transcribed

The following is a December 31, 2018, post-closing trial balance for Almway Corporation Account Title Cash Investments Accounts receivable Inventories Prepaid insurance (for the next 9 months) Land Buildings Accumulated depreciation-buildings Equipment Accumulated depreciation-equipment Patents (net of amortization) Accounts payable Notes payable Interest payable Bonds Payable Common stock Retained earnings Totals Debits Credits 65,000 130,000 70,000 210,000 8,000 110,000 430,000 $ 110,000 120,000 70,000 20,000 95,000 160,000 30,000 250,000 330,000 118,000 $1,163,000 $1,163, 000 Additional information: 1. The investment account includes an investment in common stock of another corporation of $40,000 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 $35,000 that the company has not used and is currently listed for sale 3. The cash account includes $25,000 restricted in a fund to pay bonds payable that mature in 2021 and $33,000 set aside in a three- month Treasury bill 4. The notes payable account consists of the following a. a $40,000 note due in six months b. a $60,000 note due in six years c. a $60,000 note due in five annual installments of $12,000 each, with the next installment due February 15, 2019 5. The $70,000 balance in accounts receivable is net of an allowance for uncollectible accounts of $7,000 6. The common stock account represents 110,000 shares of no par value common stock issued and outstanding. The corporation has 500,000 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

Authors: Alan Millichamp, John Taylor

12th Edition

1473778999, 9781473778993

More Books

Students also viewed these Accounting questions

Question

What are the disadvantages of the closed layered architecture?

Answered: 1 week ago

Question

2. What factors infl uence our perceptions?

Answered: 1 week ago

Question

4. Does mind reading help or hinder communication?

Answered: 1 week ago