P3-3 (SA) The following is a dec 31 2016 post closing trial balance for almway c
ID: 2425504 • Letter: P
Question
P3-3 (SA)
The following is a dec 31 2016 post closing trial balance for almway corporation
account title Debit Credit
Cash 45,000
investments 110,000
accounts rec. 60,000
inventories 200,000
prepaid ins. 9,000
land 90,000
buildings 420,000
accumulated dep.- buildings 100,000
equipment 110,000
accumulated dep.- equipment 60,000
patents (net of amortization) 10,000
accounts payable 75,000
notes payable 130,000
interest payable 20,000
bonds payable 240,000
common stock 300,000
retained earnings 129,000
totals Debits= 1,054,000 Credits=1,054,000
1. the investment account includes and investment in common stock of another corporation of 30,000 which mangment intends to hold for atleast 3 years the balance of these investments is inted to be sold in for sale
2. the land account includes land which cost 25,000 that the company had not used and is currently listed for sale.
3. the cash account includes 15,000 restricted in a fund to pay bonds payable that mature in 2019 and 23,000 restricted in a 3 month treasuery bill
4. the notes payable account consists of the following
a. a 30,000 note due in six months
b. a 50,000 note due in six months
c. a 50,000 note due in five annual installments of 10,000 each with the next installment due febuary 15 2017
5. the 60,000 balance in accounts recivable is net of an allowance for uncollectable accounts of 8,000
6. the common stock account represents 100,000 shares of no par value common stock issued and outstanding the corporation has 500,000 shares authorized
Explanation / Answer
Closing Trial Balance: Particulars Debit Credit Cash 7,000 Cash held for payment of Bonds 15,000 Cash held for Treasury Bills 23,000 Investments: Held for Sales 80,000 Investments in Other Corp 30,000 Accounts Receivable 68,000 Provision for Bad Debts written Off 8,000 Inventories 200,000 Prepaid Expenses 9,000 Land held for Sales 25,000 Assets: Land 65,000 Building 420,000 Equipment 110,000 Accumulated Depreciation on Equipment 60,000 Accumulated Depreciation on Building 100,000 Patents 10,000 Accounts Payable 75,000 Notes Payable: Due in Six Months 30,000 Due Over Six Months 50,000 Long term Notes Payable 50,000 Interest Payable 20,000 Bonds Payable 240,000 Common Stock 300,000 Retainde Earnings 129,000 1,062,000 1,062,000
Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.