The following is a December 31, 2016. post-closing trial balance for Almway Corp
ID: 2427275 • Letter: T
Question
The following is a December 31, 2016. post-closing trial balance for Almway Corporation. 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 2019 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. 2017. 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.Explanation / Answer
Balance Sheet For Alamway Corporation As of 31 december 2016 Assets Amount $ Current assets Cash & cash Equivalents Restricted 21000 Three month Treasuay Bill 29000 Unrestricted 7000 57000 Accounts Receivable 66000 Inventories 206000 Investments 86000 Pepaid Insurance 5000 Land-Available for sale 31000 Total current assets 451000 Fixed assets Land 71000 Building 426000 Accumulated Depreciation-Building 106000 320000 Equipment 116000 Accumulated Depreciation-equipment 66000 50000 Total fixed assets 441000 Long term Investment 36000 Intangible assets 16000 Total assets 944000 Liabilities Current Liabilities Accounts Payable 87000 Interestt Payable 26000 Notes payable (36000+11200) 47200 Total Current Liabilities 160200 Long term Liabilities Bonds Payable 246000 Notes payable 100800 Total Liabilities 507000 Stockholder Equity Common stock (500000 shares authorised and 106000 shares issued at no par value) 318000 Retained Earnings 119000 Total Stockholder Equity 437000 Total Liabilities & Stockholder equity 944000
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