Problem 3-3 (Algo) Balance sheet preparation [LO3-2, 3-3] The following is a December 31, 2021, post-closing trial balance for Almway Corporation. Account Title Cash Investment in equity securities Accounts receivable Inventory Prepaid insurance (for the next 9 months) Land Buildings Accumulated depreciation-buildings Equipment Accumulated depreciation-equipment Patent (net) Accounts payable Notes payable Interest payable Bonds Payable Common stock Retained earnings Totals $ Debits 65,000 130,000 70,000 210,000 8,000 110,000 430,000 120,000 Credits 20,000 $ 110,000 70,000 95,000 160,000 30,000 250,000 330,000 118,000 $1,163,000 $1,163,000 Additional information: 1. The investment in equity securities account includes an investment in common stock of another corporation of $40,000 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 $35,000 that the company has not used and is currently listed for sale. 3. The cash account includes $25,000 restricted in a fund to pay bonds payable that mature in 2024 and $33,000 restricted in a three-month Treasury bill. 4. The notes payable account consists of the following: a. a $40,000 note due in six months. b. a $60,000 note due in six years. c. a $60,000 note due in five annual installments of $12,000 each, with the next installment due February 15, 2022. 5. The $70,000 balance in accounts receivable is net of an allowance for uncollectible accounts of $7,000. 6. The common stock account represents 110,000 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, 2021. (Amounts to be deducted should be indicated by a minus sign.)
Problem 3-3 (Algo) Balance sheet preparation [LO3-2, 3-3] The following is a December 31, 2021, post-closing trial balance for Almway Corporation. Account Title Cash Investment in equity securities Accounts receivable Inventory Prepaid insurance (for the next 9 months) Land Buildings Accumulated depreciation-buildings Equipment Accumulated depreciation-equipment Patent (net) Accounts payable Notes payable Interest payable Bonds Payable Common stock Retained earnings Totals $ Debits 65,000 130,000 70,000 210,000 8,000 110,000 430,000 120,000 Credits 20,000 $ 110,000 70,000 95,000 160,000 30,000 250,000 330,000 118,000 $1,163,000 $1,163,000 Additional information: 1. The investment in equity securities account includes an investment in common stock of another corporation of $40,000 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 $35,000 that the company has not used and is currently listed for sale. 3. The cash account includes $25,000 restricted in a fund to pay bonds payable that mature in 2024 and $33,000 restricted in a three-month Treasury bill. 4. The notes payable account consists of the following: a. a $40,000 note due in six months. b. a $60,000 note due in six years. c. a $60,000 note due in five annual installments of $12,000 each, with the next installment due February 15, 2022. 5. The $70,000 balance in accounts receivable is net of an allowance for uncollectible accounts of $7,000. 6. The common stock account represents 110,000 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, 2021. (Amounts to be deducted should be indicated by a minus sign.)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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![Problem 3-3 (Algo) Balance sheet preparation [LO3-2, 3-3]
The following is a December 31, 2021, post-closing trial balance for Almway Corporation.
Account Title
Cash
Investment in equity securities
Accounts receivable.
Inventory
Prepaid insurance (for the next 9 months)
Land
Buildings
Accumulated depreciation-buildings
Equipment
Accumulated depreciation-equipment
Patent (net)
Accounts payable
Notes payable
Interest payable
Bonds Payable
Common stock
Retained earnings
Totals
$
Debits
65,000
130,000
70,000
210,000
8,000
110,000
430,000
120,000
20,000
Credits
$ 110,000
70,000
95,000
160,000
30,000
250,000
330,000
118,000
$1,163,000 $1,163,000
Additional information:
1. The investment in equity securities account includes an investment in common stock of another corporation of $40,000 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 $35,000 that the company has not used and is currently listed for sale.
3. The cash account includes $25,000 restricted in a fund to pay bonds payable that mature in 2024 and $33,000 restricted in a
three-month Treasury bill.
4. The notes payable account consists of the following:
a. a $40,000 note due in six months.
b. a $60,000 note due in six years.
c. a $60,000 note due in five annual installments of $12,000 each, with the next installment due February 15, 2022.
5. The $70,000 balance in accounts receivable is net of an allowance for uncollectible accounts of $7,000.
6. The common stock account represents 110,000 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, 2021. (Amounts to be deducted should be indicated
by a minus sign.)](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fe48b91ac-d128-464b-9c87-7d3008e2bbca%2Ff222c97d-03a6-4dfd-8b6e-dde57959381b%2Fh4z2az_processed.png&w=3840&q=75)
Transcribed Image Text:Problem 3-3 (Algo) Balance sheet preparation [LO3-2, 3-3]
The following is a December 31, 2021, post-closing trial balance for Almway Corporation.
Account Title
Cash
Investment in equity securities
Accounts receivable.
Inventory
Prepaid insurance (for the next 9 months)
Land
Buildings
Accumulated depreciation-buildings
Equipment
Accumulated depreciation-equipment
Patent (net)
Accounts payable
Notes payable
Interest payable
Bonds Payable
Common stock
Retained earnings
Totals
$
Debits
65,000
130,000
70,000
210,000
8,000
110,000
430,000
120,000
20,000
Credits
$ 110,000
70,000
95,000
160,000
30,000
250,000
330,000
118,000
$1,163,000 $1,163,000
Additional information:
1. The investment in equity securities account includes an investment in common stock of another corporation of $40,000 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 $35,000 that the company has not used and is currently listed for sale.
3. The cash account includes $25,000 restricted in a fund to pay bonds payable that mature in 2024 and $33,000 restricted in a
three-month Treasury bill.
4. The notes payable account consists of the following:
a. a $40,000 note due in six months.
b. a $60,000 note due in six years.
c. a $60,000 note due in five annual installments of $12,000 each, with the next installment due February 15, 2022.
5. The $70,000 balance in accounts receivable is net of an allowance for uncollectible accounts of $7,000.
6. The common stock account represents 110,000 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, 2021. (Amounts to be deducted should be indicated
by a minus sign.)
Transcribed Image Text:Current assets
Net accounts receivable
Total current assets
Investments:
Total investments
Property, plant, and equipment:
Net property, plant, and equipment
Intangible assets:
Total assets
Current liabilities:
Total current liabilities
Long-term liabilities:
At December 31, 2021
Assets
Liabilities and Shareholders' Equity
Total long-term liabilities
Total liabilities
Shareholders' equity:
Total shareholders' equity
Total liabilities and shareholders' equity
0
$
$
0
0
0
0
0
0
0
0
0
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