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 transcribed

image text in transcribed

image 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 $ 57,000 122,000 66,000 206,000 5,000 102,000 426,000 $ 106,000 116,000 66,000 16,000 87,000 148,000 26,000 246,000 318,000 119,000 $1,116,000 $1,116,000 Additional information: 1. The investment account includes an investment in common stock of another corporation of $36,000 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 $31,000 that the company has not used and is currently listed for sale. 3. The cash account includes $21,000 restricted in a fund to pay bonds payable that mature in 2021 and $29,000 set aside in a three-month Treasury bill. 4. The notes payable account consists of the following: a. a $36,000 note due in six months. b. a $56,000 note due in six years. c. a $56,000 note due in five annual installments of $11,200 each, with the next installment due February 15, 2019. 5. The $66,000 balance in accounts receivable is net of an allowance for uncollectible accounts of $9,000. 6. The common stock account represents 106,000 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.) ALMWAY CORPORATION Balance Sheet At December 31, 2018 Assets $ 36,000 Current assets Cash and cash equivalents Short-term investments Accounts receivable, net of allowance Inventories Prepaid insurance Total current assets 36,000 Investments Marketable securities Land held for sale Total investments 0 Property, plant, and equipment 0 Less: Accumulated depreciation-buildings 0 Total assets $ 36,000 Liabilities and Shareholders' Equity Current liabilities Total current liabilities 0 Long-term liabilities 0 0 with... O $ 0

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_2

Step: 3

blur-text-image_3

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

The Internal Auditing Pocket Guide

Authors: J. P. Russell

1st Edition

0873895606, 978-0873895606

More Books

Students also viewed these Accounting questions