Question

The following is a December 31, 2021, post-closing trial balance for Almway Corporation.

Account Title	Debits					Credits
Cash		$	53,000
Investment in equity securities			118,000
Accounts receivable			64,000
Inventory			204,000
Prepaid insurance (for the next 9 months)			8,000
Land			98,000
Buildings			424,000
Accumulated depreciation—buildings					$	104,000
Equipment			114,000
Accumulated depreciation—equipment						64,000
Patent (net)			14,000
Accounts payable						83,000
Notes payable						142,000
Interest payable						24,000
Bonds Payable						244,000
Common stock						312,000
Retained earnings						124,000
Totals		$	1,097,000		$	1,097,000

Additional information:

1. The investment in equity securities account includes an investment in common stock of another corporation of $34,000 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 $29,000 that the company has not used and is currently listed for sale.
3. The cash account includes $19,000 restricted in a fund to pay bonds payable that mature in 2024 and $27,000 restricted in a three-month Treasury bill.
4. The notes payable account consists of the following:

1. a $34,000 note due in six months.
2. a $54,000 note due in six years.
3. a $54,000 note due in five annual installments of $10,800 each, with the next installment due February 15, 2022.

5. The $64,000 balance in accounts receivable is net of an allowance for uncollectible accounts of $6,000.
6. The common stock account represents 104,000 shares of no par value common stock issued and outstanding. The corporation has 600,000 shares authorized.

Required:
Prepare a classified balance sheet for the Almway Corporation at December 31, 2021. (Amounts to be deducted should be indicated by a minus sign.)

Answer 1

ALMWAY CORPORATION
Balance Sheet
At December 31, 2021
Assets
Current assets
Cash and Cash Equivalents		$           34,000
Short term Investments		$           84,000
Accounts receivable (net)		$           64,000
Inventories		$         204,000
Prepaid insurance		$             8,000
Total current assets		$         394,000
Investments
Marketable Securities	$           34,000
Land held for sale	$           29,000
Bond sinking fund	$           19,000
Total investments		$           82,000
Property, plant, and equipment
Land	$           69,000
Building	$         424,000
Equipment	$         114,000
	$         607,000
Less : Accumulated depreciation	$       (168,000)
Net property, plant, and equipment		$         439,000
Intangible assets
Patents		$           14,000
Total assets		$         929,000
Liabilities and Shareholders' Equity
Current liabilities
Accounts payable		$           83,000
Interest payable		$           24,000
Current Maturities of long term debt		$           10,800
Note payable		$           34,000
Total current liabilities		$         151,800
Long-term liabilities
Notes payable	$           97,200
Bonds payable	$         244,000
Total Long term liabilities		$         341,200
Shareholders' equity
Common stock	$         312,000
Retained earnings	$         124,000
Total shareholders' equity		$         436,000
Total liabilities and shareholders' equity		$         929,000