The following is a December 31, 2013, post-closing trial balance for Almway Corp
ID: 2477106 • Letter: T
Question
The following is a December 31, 2013, post-closing trial balance for Almway Corporation.
Account Title Debits Credits Cash 77,000 Investments 142,000 Accounts receivable 76,000 Inventories 216,000 Prepaid insurance 6,000 Land 122,000 Buildings 436,000 Accumulated depreciation—buildings 116,000 Equipment 126,000 Accumulated depreciation—equipment 76,000 Patents (net of amortization) 26,000 Accounts payable 107,000 Notes payable 178,000 Interest payable 36,000 Bonds payable 256,000 Common stock 348,000 Retained earnings 110,000 Totals 1,227,000 1,227,000
Additional information: 1. The investment account includes an investment in common stock of another corporation of $46,000 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 $41,000 that the company has not used and is currently listed for sale.
3. The cash account includes $31,000 set aside in a fund to pay bonds payable that mature in 2016 and $39,000 set aside in a three-month Treasury bill.
4. The notes payable account consists of the following: a. a $46,000 note due in six months. b. a $66,000 note due in six years. c. a $66,000 note due in 5 annual installments of $13,200 each, with the next installment due February 15, 2014.
5. The $76,000 balance in accounts receivable is net of an allowance for uncollectible accounts of $6,000.
6. The common stock account represents 116,000 shares of no par value common stock issued and outstanding. The corporation has 300,000 shares authorized.
Prepare a classified balance sheet for the Almway Corporation at December 31, 2013.
Account Title Debits Credits Cash 77,000 Investments 142,000 Accounts receivable 76,000 Inventories 216,000 Prepaid insurance 6,000 Land 122,000 Buildings 436,000Explanation / Answer
Answer to the Question
Balance sheet for the Almway Corporation at December 31, 2013. ASSETS $ Current assets Current Investments 96000 Cash and cash equivalents $77,000 Account receivables( Net of Provision $6,000) 76,000 Inventories 216,000 Prepaid Insurance 6,000 Total current assets 471,000 NON CURRENT ASSETS Fixed assets Land 122000 Building 320,000 Equipment 50,000 Patent 26,000 Non Current Investments 46000 Total non-current assets 564,000 Total assets $1,035,000 LIABILITIES AND EQUITY Current liabilities Accounts payable $107,000 Notes Payable $59,200 Interst Payable 36,000 Total current liabilities 202,200 Non Current Liabilities Bond Payable 256,000 Notes Payable 118,800 Total non-current liabilities 374,800 Total liabilities 577,000 Shareholders’ Equity Common Stock( Authorized Capital $300,000) $348,000 Retained earnings 110,000 Total equity 458,000 s Total liabilities and equity $1,035,000Related Questions
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