H3 q8

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School

University of Texas, Permian Basin *

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Course

3301

Subject

Accounting

Date

Nov 24, 2024

Type

pdf

Pages

Uploaded by MagistrateRook14313

10/1/23, 6:25 PM Assignment Print View https://ezto.mheducation.com/api/caa/activity/C15Print?jwt=eyJhbGciOiJSUzI1NiJ9.eyJlbnZpcm9ubWVudCI6InByb2QiLCJpc3MiOiJlenQiLCJwcmlud… 2/4 8. Award: 4.58 out of 10.00 points The following is a December 31, 2024, post-closing trial balance for Almway Corporation. Account Title Debits Credits Cash $ 85,000 Investment in equity securities 150,000 Accounts receivable 80,000 Inventory 220,000 Prepaid insurance (for the next 9 months) 8,000 Land 130,000 Buildings 440,000 Accumulated depreciation—buildings $ 120,000 Equipment 130,000 Accumulated depreciation—equipment 80,000 Patent (net) 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 in equity securities 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 restricted in a fund to pay bonds payable that mature in 2027 and $43,000 restricted 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 five annual installments of $14,000 each, with the next installment due February 15, 2025. 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, 2024. Note: Amounts to be deducted should be indicated by a minus sign.

10/1/23, 6:25 PM Assignment Print View https://ezto.mheducation.com/api/caa/activity/C15Print?jwt=eyJhbGciOiJSUzI1NiJ9.eyJlbnZpcm9ubWVudCI6InByb2QiLCJpc3MiOiJlenQiLCJwcmlud… 3/4 ALMWAY CORPORATION Balance Sheet At December 31, 2024 Assets Current assets: Cash  $ 50,000  Investment in equity securities     Accounts receivable   Allowance for uncollectible accounts   Net accounts receivable 0 Inventory   Prepaid insurance   Total current assets 50,000 Investments: Investment in equity securities   Land held for sale   Total investments 0 Property, plant, and equipment: Land   Buildings   Equipment   0 Less: Accumulated depreciation - buildings   Less: Accumulated depreciation - equipment   Net property, plant, and equipment 0 Intangible assets: Patent (net)   Other assets:   Total assets $ 50,000 Liabilities and Shareholders' Equity Current liabilities: Accounts payable   Interest payable   Notes payable (current)   Notes payable (current maturities of long-term debt)   Total current liabilities 0 L t li biliti

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10/1/23, 6:25 PM Assignment Print View https://ezto.mheducation.com/api/caa/activity/C15Print?jwt=eyJhbGciOiJSUzI1NiJ9.eyJlbnZpcm9ubWVudCI6InByb2QiLCJpc3MiOiJlenQiLCJwcmlud… 4/4 *Red text indicates no response was expected in a cell or a formula-based calculation is incorrect; no points deducted. Long-term liabilities: Notes payable (long-term)   Bonds payable   Total long-term liabilities 0 Total liabilities 0 Shareholders' equity: Common stock   Retained earnings   Total shareholders' equity 0 Total liabilities and shareholders' equity $ 0 References Financial Statements Learning Objective: 03-02 Identify and describe the various asset classifications. Difficulty: 3 Hard Learning Objective: 03-03 Identify and describe the various liability and shareholders' equity classifications.