Problem 3-3 Balance sheet preparation [LO3-2, 3-3] The following is a December 3
ID: 2334120 • Letter: P
Question
Problem 3-3 Balance sheet preparation [LO3-2, 3-3] 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 $73,000 138,000 74,000 214,000 5,000 118,000 434,000 114,000 124,000 74,000 24,000 103,000 172,000 34,000 254,000 342,000 111,000 $1,204,000 $1,204,000Explanation / Answer
Answer
ASSETS
Current Assets:
Cash & Cash Equivalent
$ 44,000.00
Accounts receivables, net
$ 74,000.00
Inventories
$ 214,000.00
Prepaid Insurance
$ 5,000.00
Short Term Investments
$ 94,000.00
Total Current Assets
$ 431,000.00
Investments:
Marketable securities
$ 44,000.00
Land Helf for sale
$ 39,000.00
Sinking Fund Investments
$ 29,000.00
Total Investments
$ 112,000.00
Property, Plant & Equipment:
Land
$ 79,000.00
Building
$ 434,000.00
Accumulated Depreciation - Building
$ (114,000.00)
Equipment
$ 124,000.00
Accumulated Depreciation - Equipment
$ (74,000.00)
Total Property, Plant & equipment
$ 449,000.00
Intangible Assets:
Patents
$ 24,000.00
Total Assets
$ 1,016,000.00
LIABILITIES & SHAREHOLDERS' EQUITY
Current Liabilities:
Notes Payable
$ 44,000.00
Accounts payable
$ 103,000.00
Interest Payable
$ 34,000.00
Current Maturities of Long Term Debt
$ 12,800.00
Total Current Liabilities
$ 193,800.00
Long Term Liabilities:
Notes Payable
$ 115,200.00
Bonds Payable
$ 254,000.00
Total Long Term Liabilities
$ 369,200.00
Total Liabilities
$ 563,000.00
Shareholder's Equity:
Common Stock
$ 342,000.00
Retained earnings
$ 111,000.00
Total Shareholder's Equity
$ 453,000.00
Total Liabilities & Shareholder's Equity
$ 1,016,000.00
ASSETS
Current Assets:
Cash & Cash Equivalent
$ 44,000.00
Accounts receivables, net
$ 74,000.00
Inventories
$ 214,000.00
Prepaid Insurance
$ 5,000.00
Short Term Investments
$ 94,000.00
Total Current Assets
$ 431,000.00
Investments:
Marketable securities
$ 44,000.00
Land Helf for sale
$ 39,000.00
Sinking Fund Investments
$ 29,000.00
Total Investments
$ 112,000.00
Property, Plant & Equipment:
Land
$ 79,000.00
Building
$ 434,000.00
Accumulated Depreciation - Building
$ (114,000.00)
Equipment
$ 124,000.00
Accumulated Depreciation - Equipment
$ (74,000.00)
Total Property, Plant & equipment
$ 449,000.00
Intangible Assets:
Patents
$ 24,000.00
Total Assets
$ 1,016,000.00
LIABILITIES & SHAREHOLDERS' EQUITY
Current Liabilities:
Notes Payable
$ 44,000.00
Accounts payable
$ 103,000.00
Interest Payable
$ 34,000.00
Current Maturities of Long Term Debt
$ 12,800.00
Total Current Liabilities
$ 193,800.00
Long Term Liabilities:
Notes Payable
$ 115,200.00
Bonds Payable
$ 254,000.00
Total Long Term Liabilities
$ 369,200.00
Total Liabilities
$ 563,000.00
Shareholder's Equity:
Common Stock
$ 342,000.00
Retained earnings
$ 111,000.00
Total Shareholder's Equity
$ 453,000.00
Total Liabilities & Shareholder's Equity
$ 1,016,000.00
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