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The following is a December 31, 2021, post-closing trial balance for Almway Corporation. Account Title Debits Credits Cash $ 63,000 Investment in equity securities 128,000
The following is a December 31, 2021, post-closing trial balance for Almway Corporation.
Account Title | Debits | Credits | |||||||
Cash | $ | 63,000 | |||||||
Investment in equity securities | 128,000 | ||||||||
Accounts receivable | 69,000 | ||||||||
Inventory | 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 | ||||||||
Patent (net) | 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 in equity securities 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 2024 and $32,000 restricted 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, 2022.
- 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, 2021. (Amounts to be deducted should be indicated by a minus sign.) ALMWAY CORPORATION
Balance Sheet
At December 31, 2021
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