he following is a December 31, 2024, post-dosing trial balance for Almway Corporation. Account Title Debits Credits Cash 45,000 Investments 110,000 Accounts receivable 60,000 Inventories 200,000 Prepaid insurance (for the next 9 months) 9,000 Land 90,000 Buildings 420,000 Accumulated depreciation-buildings $ 100,000 Equipment 110,000 60,000 10,000 75.000 130.000 20.000 240,000 300.000 129.000 Accumulated depreciation-equipment Patents (net of amorization) Accounts payable Notes payable Interest payable Bonds Payable Common stock Retained eamings Totals Additional information: $ 1,054,000 $ 1,054,000 1. The investment account includes an investment in common stock of another corporation of $30,000 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 $25,000 that the company has not used and is currently listed for sale. 3. The cash account includes $15,000 restricted in a fund to pay bonds payable that mature in 2027 and $23,000 restricted in a three-month Treasury bill. 4. The notes payable account consists of the following a. a $30,000 note due in six months. b. a $50,000 note due in six years. c. a $50,000 note due in five annual installments of $10,000 each, with the next installment due February 15, 2025 5. The $60,000 balance in accounts receivable is net of an allowance for uncollectible accounts of $8,000 6. The common stock account represents 100,000 shares of no par value common stock issued and outstanding. The corporation has 500,000 shares authorized.
he following is a December 31, 2024, post-dosing trial balance for Almway Corporation. Account Title Debits Credits Cash 45,000 Investments 110,000 Accounts receivable 60,000 Inventories 200,000 Prepaid insurance (for the next 9 months) 9,000 Land 90,000 Buildings 420,000 Accumulated depreciation-buildings $ 100,000 Equipment 110,000 60,000 10,000 75.000 130.000 20.000 240,000 300.000 129.000 Accumulated depreciation-equipment Patents (net of amorization) Accounts payable Notes payable Interest payable Bonds Payable Common stock Retained eamings Totals Additional information: $ 1,054,000 $ 1,054,000 1. The investment account includes an investment in common stock of another corporation of $30,000 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 $25,000 that the company has not used and is currently listed for sale. 3. The cash account includes $15,000 restricted in a fund to pay bonds payable that mature in 2027 and $23,000 restricted in a three-month Treasury bill. 4. The notes payable account consists of the following a. a $30,000 note due in six months. b. a $50,000 note due in six years. c. a $50,000 note due in five annual installments of $10,000 each, with the next installment due February 15, 2025 5. The $60,000 balance in accounts receivable is net of an allowance for uncollectible accounts of $8,000 6. The common stock account represents 100,000 shares of no par value common stock issued and outstanding. The corporation has 500,000 shares authorized.
Cornerstones of Financial Accounting
4th Edition
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Jay Rich, Jeff Jones
Chapter7: Operating Assets
Section: Chapter Questions
Problem 4MCQ
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Transcribed Image Text:he following is a December 31, 2024, post-dosing trial balance for Almway Corporation.
Account Title
Debits
Credits
Cash
45,000
Investments
110,000
Accounts receivable
60,000
Inventories
200,000
Prepaid insurance (for the next 9 months)
9,000
Land
90,000
Buildings
420,000
Accumulated depreciation-buildings
$ 100,000
Equipment
110,000
60,000
10,000
75.000
130.000
20.000
240,000
300.000
129.000
Accumulated depreciation-equipment
Patents (net of amorization)
Accounts payable
Notes payable
Interest payable
Bonds Payable
Common stock
Retained eamings
Totals
Additional information:
$ 1,054,000 $ 1,054,000
1. The investment account includes an investment in common stock of another corporation of $30,000 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 $25,000 that the company has not used and is currently listed for sale.
3. The cash account includes $15,000 restricted in a fund to pay bonds payable that mature in 2027 and $23,000 restricted in a three-month Treasury bill.
4. The notes payable account consists of the following
a. a $30,000 note due in six months.
b. a $50,000 note due in six years.
c. a $50,000 note due in five annual installments of $10,000 each, with the next installment due February 15, 2025
5. The $60,000 balance in accounts receivable is net of an allowance for uncollectible accounts of $8,000
6. The common stock account represents 100,000 shares of no par value common stock issued and outstanding. The corporation has 500,000 shares authorized.
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