Question

The following is a December 31, 2016, post-closing trial balance for Almway Corporation.

Account Title	Debits			Credits
Cash		47,000
Investments		112,000
Accounts receivable		61,000
Inventories		201,000
Prepaid insurance		8,000
Land		92,000
Buildings		421,000
Accumulated depreciation—buildings					101,000
Equipment		111,000
Accumulated depreciation—equipment					61,000
Patents (net of amortization)		11,000
Accounts payable					77,000
Notes payable					133,000
Interest payable					21,000
Bonds Payable					241,000
Common stock					303,000
Retained earnings					127,000
Totals		1,064,000			1,064,000

   

Additional information:

1.	The investment account includes an investment in common stock of another corporation of $31,000 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 $26,000 that the company has not used and is currently listed for sale.
3.	The cash account includes $16,000 restricted in a fund to pay bonds payable that mature in 2019 and $24,000 set aside in a three-month Treasury bill.
4.	The notes payable account consists of the following:

	a.	a $31,000 note due in six months.
	b.	a $51,000 note due in six years.
	c.	a $51,000 note due in five annual installments of $10,200 each, with the next installment due February 15, 2017.

5.	The $61,000 balance in accounts receivable is net of an allowance for uncollectible accounts of $9,000.
6.	The common stock account represents 101,000 shares of no par value common stock issued and outstanding. The corporation has 400,000 shares authorized.

Required:

Prepare a classified balance sheet for the Almway Corporation at December 31, 2016. (Amounts to be deducted should be indicated by a minus sign.)

Answer 1

Balance sheet
Assets			Liabilties & shareholder's equity
Current Assets			Current liabilties:
Cash and cash equivalents(47000-16000)	$      31,000		Accounts payable	$    77,000
Short term investments(112000-31000)	$      81,000		Interest payable	$    21,000
Accounts receivable met	$      61,000		Note payable	$    31,000
Inventories	$   201,000		Current maturities of long term debt	$    10,200
Prepaid insurance	$        8,000		total current liabilties		$ 139,200
Total current assets		$ 382,000
			Long term liabilties
Investments			Notes payable(51000+51000-10200)	$    91,800
Marketable securities	$      31,000		Bonds payable	$ 241,000
Land held for sale	$      26,000		Total long term liailities		$ 332,800
Bond sinking fund	$      16,000		total liabilities		$ 472,000
total investments		$    73,000
			Shareholder's equity
PP&EE			common stock	$ 303,000
Land	$      66,000		retained earnigns	$ 127,000
Building	$   421,000		total Shareholder's equity		$ 430,000
Equipment	$   111,000
	$   598,000
Les:accumulated depriciation	$ (162,000)	$ 436,000
intangible assets
patents	$      11,000	$    11,000
total assets		$ 902,000	total liabilties &equity		$ 902,000