Thursday, 7 May 2015

The following is a December 31, 2013, post-closing trial balance for Almway Corporation.

The following is a December 31, 2013, post-closing trial balance for Almway Corporation.

  Account Title Debits Credits
  Cash 85,000
  Investments 150,000
  Accounts receivable 80,000
  Inventories 220,000
  Prepaid insurance 8,000
  Land 130,000
  Buildings 440,000
  Accumulated depreciation—buildings 120,000
  Equipment 130,000
  Accumulated depreciation—equipment 80,000
  Patents (net of amortization) 30,000
  Accounts payable 115,000
  Notes payable 190,000
  Interest payable 40,000
  Bonds payable 260,000
  Common stock 360,000
  Retained earnings 108,000







     Totals 1,273,000 1,273,000















Additional information:
 1. 
The investment account includes an investment in common stock of another corporation of $50,000 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 $45,000 that the company has not used and is currently listed for sale.
 3. 
The cash account includes $35,000 set aside in a fund to pay bonds payable that mature in 2016 and $43,000 set aside in a three-month Treasury bill.
 4.  The notes payable account consists of the following:
a.  a $50,000 note due in six months.
b.  a $70,000 note due in six years.
c. 
a $70,000 note due in 5 annual installments of $14,000 each, with the next installment due February 15, 2014.
 5.  The $80,000 balance in accounts receivable is net of an allowance for uncollectible accounts of $5,000.
 6. 
The common stock account represents 120,000 shares of no par value common stock issued and outstanding. The corporation has 500,000 shares authorized.

Required:
Prepare a classified balance sheet for the Almway Corporation at December 31, 2013.
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Explanation: